On January 17, 2017, the SEC announced a number of political
contribution-related settlements with investment advisers, both
registered and exempt. As background, Rule 206(4)-5 under the
Investment Advisers Act of 1940 limits the size of political
contributions that certain personnel of an investment adviser may
make to state and local officials, among other things.
Specifically, limits apply to contributions to officials or
candidates (such as a Governor or State Treasurer) who can
influence the investment decisions of public institutional
investors (such as state employee pension plans) that are clients
of the adviser or invest in the adviser's funds. If the
relevant contribution threshold is breached, an adviser is
prohibited from accepting compensation from the specific public
investor for a two-year period. A quick summary of the
settlements appears in the table below.
(at time of conduct)
Official Receiving Campaign Contribution
Adviser's Client or Investor over Which Public Official
Had Investment Influence
(1) Treasurer of
Pennsylvania (who was also a candidate for Governor) and (2)
Governor of Pennsylvania
State Employees' Retirement System (for each)
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attorney in your state. (c) Perkins Coie 2017
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According to the National Association of Unclaimed Property Administrators (NAUPA), state unclaimed property programs are holding nearly $42 billion in assets, just waiting to be claimed by their rightful owners.
The recently issued Notice 2015-59 expresses significant
concerns with the application of section 355 to certain corporate
separations, including transactions that result in distributing
corporation (distributing) or distributed corporation (controlled)
having large amounts of investment assets.
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