Buzz Archive:
New York Advisors Subject to Pay-To-Play Rules

by Michael T.G. Long, Esq., and Kerstin M. Sundstrom, Esq. of Lowenstein Sandler, 1/20/2010

In November 2009, new "pay-to-play" rules went into effect regarding political contributions by investment advisers who provide investment services to or accept investments from the New York State Common Retirement Fund (the "CRF"). Under the new rules, investment advisers and their key personnel that make a political contribution in any amount to a candidate for New York State Comptroller may be disqualified for two years from accepting investments from or contracting to provide investment services to the CRF. In addition, going forward, a prohibited contribution or a failure to make proper disclosure of any contribution may result in termination of the investment adviser's existing CRF investments or investment service contracts, as well as other penalties such as forfeiture of interest and fees.

Sound off on this week's buzz in the Comments Section.