(HedgeCo.Net) \u2014 The Securities and Exchange Commission today announced that 10 investment advisory firms have agreed to pay penalties ranging from $35,000 to $100,000 to settle charges that they violated the SEC\u2019s investment adviser pay-to-play rule by receiving compensation from public pension funds within two years after campaign contributions made by the firms\u2019 associates.<\/p>\n
According to the SEC\u2019s orders, investment advisers are subject to a two-year timeout from providing compensatory advisory services either directly to a government client or through a pooled investment vehicle after political contributions were made to a candidate who could influence the investment adviser selection process for a public pension fund or appoint someone with such influence. The SEC\u2019s orders find that these 10 firms violated the two-year timeout by accepting fees from city or state pension funds after their associates made campaign contributions to elected officials or political candidates with the potential to wield influence over those pension funds.<\/p>\n
\u201cThe two-year timeout is intended to discourage pay-to-play practices in the investment of public money, including public pension funds,\u201d said LeeAnn Ghazil Gaunt, Chief of the SEC Enforcement Division\u2019s Public Finance Abuse Unit. \u201cAdvisory firms must be mindful of the restrictions that can arise from campaign contributions made by their associates.\u201d <\/p>\n
Without admitting or denying the findings, the 10 firms consented to the SEC\u2019s orders finding they violated Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-5. The firms are censured and must pay the following monetary penalties:<\/p>\n
Adams Capital Management \u2013 $45,000
\nAisling Capital \u2013 $70,456
\nAlta Communications \u2013 $35,000
\nCommonwealth Venture Management Corporation \u2013 $75,000
\nCypress Advisors \u2013 $35,000
\nFFL Partners \u2013 $75,000
\nLime Rock Management \u2013 $75,000
\nNGN Capital \u2013 $100,000
\nPershing Square Capital Management \u2013 $75,000
\nThe Banc Funds Company \u2013 $75,000<\/p>\n","protected":false},"excerpt":{"rendered":"
(HedgeCo.Net) \u2014 The Securities and Exchange Commission today announced that 10 investment advisory firms have agreed to pay penalties ranging from $35,000 to $100,000 to settle charges that they violated the SEC\u2019s investment adviser pay-to-play rule by receiving compensation from […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-56155","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/56155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=56155"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/56155\/revisions"}],"predecessor-version":[{"id":56156,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/56155\/revisions\/56156"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=56155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=56155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=56155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}