Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 06 JULY 2011

SEC Amends Pay-To-Play Rule

Foley Hoag LLP
Explore more from Foley Hoag LLP

On June 22, 2011, the Securities and Exchange Commission ("SEC") released amendments to Rule 206(4)-5 (the "Rule") under the Investment Advisers Act of 1940 (the "Advisers Act"), which places restrictions on political contributions by an investment advisor or its covered associates, and prohibits the engagement by an investment advisor of unregulated third party solicitors to solicit government entity clients on its behalf.

United StatesFinance and Banking
Robert Sawyer
Robert Sawyer
Author LinkedIn connections

On June 22, 2011, the Securities and Exchange Commission ("SEC") released amendments to Rule 206(4)-5 (the "Rule") under the Investment Advisers Act of 1940 (the "Advisers Act"), which places restrictions on political contributions by an investment advisor or its covered associates, and prohibits the engagement by an investment advisor of unregulated third party solicitors to solicit government entity clients on its behalf.

As initially adopted, investment advisors subject to the Rule included investment advisors registered with the SEC, as well as advisors operating under the exemption from registration provided by Section 203(b)(3) of the Adviser's Act (the former "private adviser" exemption, which was repealed by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act")). In order to harmonize the Rule with the Dodd-Frank Act, the SEC has extended the application of the Rule to include any advisor that is exempt from registration

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

SEC Advances “Responsible Retailization” Through A Potential Accredited Investor Exam And Potential Regulated Fund Reforms

On September 30, 2026, the Securities and Exchange Commission (SEC) issued two rule proposals and five notices aimed at expanding investors’ access to private markets. The package would add ways to qualify as an accredited investor, including passing a new exam administered by the Financial Industry Regulatory Authority (FINRA), broaden performance-based compensation and modernize regulated funds, including interval funds and business development companies (BDCs).
United StatesFinance and Banking
Proskauer Rose LLP
Proskauer Rose LLP
Article

OCC Issues Examiner Framework For Banks’ Use Of Artificial Intelligence

The Office of the Comptroller of the Currency has released a new framework for evaluating banks' deployment of artificial intelligence and agentic AI systems in their business operations. This guidance establishes how examiners will assess AI through existing risk management disciplines rather than creating separate regulatory requirements, with review intensity scaled to each use case's potential consequences and level of human oversight.
United StatesFinance and Banking
Sheppard
Sheppard
Article

23x5 Trading Comes To US Exchanges: What Firms Should Know Before Launch

US national securities exchanges are preparing to launch 23x5 trading by December 6, 2026, marking the most significant expansion of trading hours in decades. This comprehensive analysis examines the regulatory approvals, operational infrastructure changes, investor protection mechanisms, and issuer considerations necessary to support overnight equity trading from Sunday through Thursday evenings.
United StatesFinance and Banking
WilmerHale
WilmerHale
Article

SEC Proposes Rule Amendments To Expand Retail Access To Private Markets

The SEC has proposed sweeping amendments to expand retail investor access to private market strategies, including changes to performance-based compensation rules for registered investment advisers and modernization of the interval fund framework. The proposals also explore new credential-based pathways for individuals to qualify as accredited investors, potentially opening private offerings to a broader pool of eligible participants.
United StatesFinance and Banking
Duane Morris LLP
Duane Morris LLP
Article

California Requires Disclosure Of AI-Generated People In Advertising

California has enacted a groundbreaking AI disclosure law requiring advertisers to clearly identify when synthetic performers appear in their marketing materials. The legislation, set to take effect in 2027, includes a private right of enforcement that could potentially open the door to class action litigation against brands using AI-generated performers without proper disclosure.
United StatesMedia, Telecoms, IT, Entertainment
Foley Hoag LLP
Foley Hoag LLP
Article

Virginia’s Initial Draft Of Adult-use Marijuana Regulations – What You Should Know And What Questions Remain

Virginia's Cannabis Control Authority has released its initial draft of adult-use marijuana regulations, outlining application fees, license caps, and the approval process for the state's anticipated July 2027 launch of recreational cannabis sales. While the draft provides crucial details on licensing requirements and ownership restrictions, significant questions remain about the application timeline and evaluation criteria that will determine which entities receive coveted permits.
United StatesConsumer Protection
Foley Hoag LLP
Foley Hoag LLP
Article

Rising Cyberattacks On U.S. Water Infrastructure: Federal Guidance And Next Steps For Operators

Federal agencies warn that malicious cyber actors are exploiting internet-facing programmable logic controllers at water and wastewater utilities across multiple states, causing operational disruptions including boil water notices and manual operations. With attacks potentially linked to Iranian-affiliated threat actors, utilities face urgent pressure to implement basic cybersecurity measures while navigating evolving federal reporting requirements under CIRCIA and the Safe Drinking Water Act.
United StatesTechnology
Foley Hoag LLP
Foley Hoag LLP
Article

FDA Holds Landmark Public Hearing On The Future Therapeutic Use Of Psychedelic Drugs

The FDA, in collaboration with federal partners, held a landmark public hearing on September 14, 2026, to gather input on the future therapeutic use of psychedelic drugs, drawing over 18,000 registered attendees. This hearing represents one of the earliest implementations of Executive Order 14401, which directs federal agencies to expedite research, review, and approval of psychedelic drugs for serious mental health conditions.
United StatesFood, Drugs, Healthcare, Life Sciences
Foley Hoag LLP
Foley Hoag LLP
Article

OCC Proposes BSA/AML And Sanctions Compliance Standards For Permitted Payment Stablecoin Issuers Under The GENIUS Act

The Office of the Comptroller of the Currency has proposed new regulations that would impose Bank Secrecy Act and sanctions compliance requirements on permitted payment stablecoin issuers under its jurisdiction. This rulemaking, coordinated with FinCEN and OFAC, establishes anti-money laundering, counter-terrorism financing, and sanctions program standards for stablecoin issuers as part of the broader implementation of the GENIUS Act framework.
United StatesFinance and Banking
Foley Hoag LLP
Foley Hoag LLP
Article

UPDATE: DEA Publishes Registration Applications For Medical Marijuana Manufacturers, Distributors, And Analytical Labs

The DEA has opened new registration portals for medical marijuana manufacturers, distributors, and analytical labs, expanding beyond the dispensary registration that became available earlier this year. These applications require extensive business information and background disclosures, with fees ranging from $296 to $3,699, and may provide significant compliance and commercial benefits for cannabis businesses operating under state medical marijuana programs.
United StatesGovernment, Public Sector
Foley Hoag LLP
Foley Hoag LLP