SEC Proposes Scrapping The Rule Banning Adviser Pay-To-Play Donations
Rule 206(4)-5 barred an adviser from managing government money for two years after donating to the officials who hire them.
- Release IA-6994, file S7-2026-31, filed September 3, 2026, targets Rule 206(4)-5 for full repeal.
- The current rule bars paid advisory work for government clients for two years after a donation.
- SEC says existing Advisers Act requirements are "likely sufficient" to police pay-to-play on their own.
Why it matters: The agency that built the fence between a donation and a government contract is now removing it.
SEC Release IA-6994 (File No. S7-2026-31), Proposed Rule: Political Contributions by Certain Investment Advisers ↗ · Sep 3, 20269/3/26