Key takeaways

• The SEC staff has again delayed the compliance date of the SEC Pay-to-Play Rule that will prohibit investment advisers from retaining placement agents and client solicitors that are not themselves subject to “pay-to-play” rules until such time as both FINRA and the MSRB have adopted such rules. It is currently not clear when FINRA and the MSRB will adopt their proposed rules.
• With the kick-off of presidential campaign season, we recommend that investment advisers remind their covered associates of their restrictions under the Pay-to-Play Rule and applicable state and local laws, including with respect to state or local government officials running for federal office (e.g., governors running for president).