The Securities and Exchange Commission on Wednesday proposed a rule to prohibit "pay-to-play" practices among investment advisers to public pension funds.
The proposal, intended to curb the use of political campaign contributions to win pension fund management business, would apply to thousands of investment advisers with more than $25 million of assets under management, as well as hedge funds, venture capital funds, and other private investment companies.
The SEC will consider final adoption of the proposal after a 75-day public comment period. It would be an anti-fraud rule under the Investment Advisers Act.
The SEC's proposal is "part of the commission's …