Regulatory Alerts2016-09-02 | 2016-20889Added
SEC Notice of Intent to Issue Order Regarding FINRA Rule 2030 Pay-to-Play Restrictions
The Securities and Exchange Commission intends to issue an order finding that FINRA Rule 2030 imposes substantially equivalent or more stringent restrictions on broker-dealers than the SEC Pay to Play Rule imposes on investment advisers. This determination allows broker-dealers to qualify as regulated third-party solicitors under the Advisers Act, thereby exempting them from the ban on paying unregulated third parties for government business solicitations. The Commission concludes that FINRA's rule is consistent with the objectives of the SEC Pay to Play Rule and prohibits covered members from engaging in distribution activities for two years after covered political contributions.
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