SEC Extends RIA Compliance Date for Third-Party Solicitor Provisions Under the Pay-to-Play Rule

On June 8th, the U.S. Securities and Exchange Commission (SEC) extended the date on which investment advisers must comply with the ban on third-party solicitations under the Pay-to-Play Rule.  The date has been extended from June 13, 2012 until nine months after the compliance date to register as a municipal advisor, which has yet to be finalized.

Adopted as part of the original Pay-to-Play Rule on July 1, 2010, the relevant provision prohibits an investment adviser and its covered associates from providing compensation to any third party for a solicitation of advisory business from a government entity, unless the referring party is an SEC registered investment adviser or registered broker-dealer subject to existing Pay-to-Play restrictions.

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