By Richard Ellenbogen
The Securities and Exchange Commission has proposed Rule 206(4)-5 (SEC Rel. No. IA-2910 (8/3/09)) under the Investment Advisers Act of 1940, as amended, designed to prevent "pay to play" practices by registered and non-registered investment advisers compensating placement agents, finders and other intermediaries for procuring investment advisory business from government pension plans.
By Michael Szlamkowicz
, Alex Radetsky
Letters of intent or memoranda of understanding are frequently used in private equity transactions to evidence the preliminary understanding of a potential transaction before the parties commit significant time and resources to the transaction.