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SEC Targets Investment Advisers Fishing for Pension Business

Investment advisers who get caught trying to steer pension business their way by showering elected officials with campaign cash may be forced to work without fees under a new rule proposed by the SEC.

The proposed rule, which if approved isn't expected to go into effect until next year at the earliest, is designed to prohibit so-called "pay-to-play" practices.

The new rule would ban investment advisers and their executives from making contributions of over $250 to politicians who have a say in pension plan management. Under these "pay-to-play" scenarios, investment advisers or their top executives give campaign money to politicians in hopes they will give them government pension plans to manage.