Investment advisers have welcomed the Securities & Exchange
Commission (SEC) no-action letter on pay-to-play requirements
to keep records of all government entities that have invested
in a covered investment pool to which they have advised.
"This was greatly longed for," one attorney
The Government Plan Recordkeeping Rule came into
force on September 13, just a day after the SEC issued its no-action letter in response to an Investment
Company Institute (ICI) request to issue an alternative set of
"When government entities invest in a mutual fund advised by
an adviser subject to the SEC’s rule, the adviser
has no direct relationship with the mutual fund’s
clients and therefore would not know who those clients are or
whether they are a government [entity]," said Tamara Salmon,
senior associate counsel at the...