×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Skip to main content
Tags: Securities and Exchange Commission | SEC | pay to play rule | contributions

Groups Seek Changes in SEC's 'Pay to Play Rule'

By    |   Monday, 29 December 2014 10:49 AM EST

Campaign finance groups are urging expansion or elimination of a Securities and Exchange Commission "pay to play" rule designed to limit political conflicts of interest in state contracting, The Wall Street Journal reports.

The 2010 rule was design to prohibit "certain employees of financial-services companies that do — or might do — business with state agencies from contributing to the officials who oversee those agencies," the Journal noted.

As eyes turn to the 2016 election cycle, some critics note that the rule should be broadened with the increase of super PAC money, particularly contributions geared at supporting a single candidate. Others, however, say the "pay to play" rule should be eliminated entirely because "it creates an advantage for members of Congress, who aren’t subject to the rule, over governors in campaign fundraising," the Journal wrote.

The rule does not specially address how it applies to super PACs, which gives an open window for those using such funds moving ahead, the Journal said.

"The ability to game these regulations with a super PAC shows that our campaign finance system is more loophole than law these days. The SEC should look into whether there’s anything the agency can do to update these rules," Adam Smith, a spokesman for Every Voice, told the Journal of his group's concerns.

The watchdog group Public Citizen found that during the 2014 election cycle, "42 percent of groups that spent more than $100,000 and were allowed to raise money without contribution caps supported a single candidate," the Journal noted.

A federal judge in September dismissed a Republican challenge from two states to the SEC rule, which restricts contributions from asset managers to campaigns, Business Insider reported.

The legal challenge from the Florida and Tennessee Republican parties, would have, if successful, ended limits on state donations. The state plaintiffs in the case suggested that the existing SEC rule violated their free speech.

© 2022 Newsmax. All rights reserved.


US
Campaign finance groups are urging expansion or elimination of a Securities and Exchange Commission "pay to play" rule designed to limit political conflicts of interest in state contracting, The Wall Street Journal reports.
Securities and Exchange Commission, SEC, pay to play rule, contributions
312
2014-49-29
Monday, 29 December 2014 10:49 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved
Download the NewsmaxTV App
NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved