2010 Webinar - Compliance with New Pay-to-Play Rule 206-4(5) under the Advisers Act
2010 Webinar: Compliance with New Pay-to-Play Rule 206-4(5) under the Advisers Act
Tuesday, August 17, 2010, 1:00 pm - 2:15 pm EDT
Presenter Information: Karen L. Barr, IAA General Counsel; Ki P. Hong, Partner, Skadden, Arps, Slate, Meagher & Flom LLP; and Melissa A. Roverts, Senior Counsel, Division of Investment Management, SEC (Biographies)
On June 30, the SEC adopted new rule 206(4)-5 under the Investment Advisers Act to address “pay-to-play” activities by investment advisers doing business with government entity clients (public pension plans). Under the rule, advisers will be banned from receiving compensation for two years from the date of a prohibited political contribution. The rule requires advisers to monitor and, in effect, severely limit their covered associates’ political contributions to officials of a government entity client. The rule also prohibits advisers from paying third parties to solicit government entity clients for the adviser’s advisory services unless the third party is an SEC-registered broker-dealer or SEC-registered investment adviser. Finally, the rule prohibits an adviser and its covered associates from coordinating or soliciting any person or political action committee (PAC) to make contributions or payments to certain officials and certain state or local political parties.
The webinar will cover major aspects of the new rule, including:
- Who is a “covered associate” of the adviser?
- Who is an “official” of a government entity client?
- Application of the rule to covered investment pools, such as certain registered investment companies, hedge funds, private equity funds, and venture capital funds
- What penalties are imposed on advisers for a prohibited political contribution
- Policies and procedures to comply with the rule
- New recordkeeping requirements
- Compliance dates for the new rule (March 14, 2011 and September 13, 2011)
Registration for this event is closed. To purchase a recording of this webinar, please complete and return a 2010 webinar recording payment form. If you have any questions, please contact the IAA events team at IAAEvents@investmentadviser.org or (202) 293-4222.