SEC Proposes Rescission Of Investment Adviser Political Contribution Rule

07:10 PM EDT, 09/03/2026 (MT Newswires) -- The SEC proposed rescinding its "pay-to-play" rule that prohibits investment advisers from providing compensated investment advisory services to a government client for two years after certain political contributions, the agency said Thursday. The SEC said the rule has created unintended consequences since its 2010 adoption, including operational challenges and a de facto strict liability standard that can result in substantial prohibitions and fines over small donations or inadvertent violations. SEC Chairman Paul Atkins said the rule has effectively suppressed political speech and that political contributions are more appropriately governed by local ordinances, state laws and federal election regulations. The proposal would also remove related recordkeeping requirements. The public comment period will remain open for 60 days after the proposal is published in the Federal Register.