In recent years, there has been a proliferation of pay-to-play rules at the federal, state, and local level. Many of these rules target all who seek to do business with a particular government entity. Some focus on a certain industry or profession, such as investment advisers. All claim that the end goal is to prevent corruption or the appearance thereof. This was on display once again when the Municipal Securities Rulemaking Board (MSRB) announced during its Quarterly Meeting it was developing a proposal for a pay-to-play rule for municipal advisors. A close look at the MSRB’s discussion reveals the impact of the Supreme Court’s rationale in McCutcheon v. FEC on the further release of these rules.
Source: Steptoe & Johnson LLP: The Next Rule: Pay-to-Play, Municipal Advisors and McCutcheon
