SEC Stays Compliance Date for Pay-to-Play Rule Solicitor Payments
The SEC has indefinitely postponed the ban on payments to third-party solicitors under the pay-to-play rule, which prohibits payments to a solicitor for a government client unless the solicitor is SEC registered or is a FINRA member. Because municipal advisers (required to register with the SEC under Dodd-Frank) will be included in the list of permitted solicitors, the SEC has postponed the compliance date until nine months after the compliance date of a final rule adopted by the SEC for municipal adviser registration. The MSRB and the SEC are currently discussing registration requirements and proposed rules. The ban on political contributions remains in effect.