{
  "id": 6119366,
  "title": "SEC proposal could give PE more freedom over political donations",
  "url": "https://urgent.news/2026/09/07/sec-proposal-could-give-pe-more-freedom-over-political-donations",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-07T08:59:11.000Z",
  "source": {
    "name": "Private Equity Wire",
    "slug": "private-equity-wire",
    "url": "https://www.privateequitywire.co.uk/sec-proposal-could-give-pe-more-freedom-over-political-donations/"
  },
  "original_language": "en",
  "account": "The US Securities and Exchange Commission (SEC) is proposing to eliminate its \"pay-to-play\" rule for investment advisers, potentially increasing private equity firms' ability to make political contributions. According to the Wall Street Journal, the rule, established in 2010 following public pension scandals in states like California and New York, currently prohibits investment advisers from earning compensation for managing government assets for two years after making certain political contributions. SEC Chair Paul Atkins claims the regulation has unnecessarily limited investment advisers' political involvement and imposed harsh penalties for minor infractions. He argues that removing the rule would not undermine existing fraud protections, as advisers would still be bound by the SEC's broader anti-fraud regulations. The proposal will undergo a 60-day public comment period before implementation. For private equity firms, the most significant consequence may be at the state and municipal levels, where these firms often manage capital for government investment vehicles. Political contributions can create conflicts under the current pay-to-play requirements, particularly when the recipient holds the power to influence public investment decisions. In California, for instance, the governor appoints members of state pension boards, potentially restricting private equity executives' ability to support gubernatorial candidates. While the federal impact is likely more limited due to the absence of a direct equivalent to state pension systems at the national level, private equity firms have increasingly engaged in US politics, particularly during the 2024 election cycle, where the industry reached record political spending levels. Private equity firms have become more active in supporting Republican candidates and conservative political action committees. However, measuring state and local political spending by the industry remains challenging due to the lack of comprehensive campaign-finance data at those levels. Adam Aderton, a partner at Simpson Thacher & Bartlett, notes that the existing SEC rule has had a significant impact on political contributions by private equity firms and other advisers, especially those managing public-sector funds. Most firms either prohibit political donations outright or require compliance review before making contributions. Removing the SEC rule would not eliminate the need for firms to monitor political activity, as state and local jurisdictions maintain their own pay-to-play restrictions.",
  "summary": "The US Securities and Exchange Commission is proposing to scrap its “pay-to-play” rule for investment advisers, potentially giving private equity firms greater scope to make political contributions while continuing to manage assets for government-backed investors, according to a report by the Wall Street Journal.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}