SEC moves to scrap pay-to-play ban for private equity advisers
The SEC proposes rescinding Rule 206(4)-5, the pay-to-play prohibition that bars advisers from government work for two years after political contributions. It argues the rule is unwieldy and chills speech, offering no replacement and relying on state and local laws instead. The proposal, backed by SEC Chair Paul Atkins and two Republican commissioners, would shift enforcement to existing laws with comments open for two months; critics warn of potential bribery risks if the rule is eliminated.