FINRA Announces Effective Date of "Pay-to-Play" Rules
FINRA notified member firms that the SEC approved FINRA Rules 2030 and 4580, which establish "pay-to-play" and related requirements. The pay-to-play rules regulate the activities of member firms that engage in distribution or solicitation activities for compensation with government entities on behalf of investment advisers. Specifically, the proposed rules impose a "two-year time out" for engaging in distribution or solicitation activities for compensation with a government entity on behalf of an investment adviser after the covered member or its covered associates made a contribution to an official of the government entity.
The rules will become effective on August 20, 2017.
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