Regulatory Compliance Association Reviews

"Pay to Play" Regulation & Compliance

Practice Edge 02

“Pay to Play” Regulation & Compliance™

Date: October 2, 2014
General Session: 12 Noon to 1:30 PM
Location: Webcast (Free)

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The “Pay to Play” Regulation and Compliance landscape continues to become more complex and treacherous:

This session will provide a comprehensive overview of the Federal and State “Pay to Play” regulatory framework.

The Speaking Faculty is comprised of seminal experts within the field, who will deliver a complete discussion and analysis regarding the intricate legal mechanics, latest developments and best practices; as well as a detailed examination of the two forms of “Pay to Play” regulation:

1. Strict-liability whereby a political contribution automatically disqualifies a firm from contracting with the effected public entity (i.e. SEC Rule 206(4)-5, MSRB Rule G-37, CFTC Rule 23.451, and similar state laws).

2. Fraud provisions (e.g. Federal Honest Service Fraud) which may trigger a criminal prosecution against the person or firm for proffering the contribution.

By the end of the session participants will be able to:

1. Define the types of laws and rules that regulate pay-to-play

2. Fraud/conflict of interests based pay-to-play laws
a. Define the relevant federal and state fraud/conflict of interest laws and rules
b. Recognize the areas of conduct and types of arrangements that create heightened risk under fraud/conflict of interests based pay-to-play laws
c. Identify compliance strategies, systems and best practices to ensure compliance with these laws

3. Define strict-liability pay-to-play laws
a. Define the SEC’s objectives in adopting and enforcing the pay-to-play rule;
b. Learn key components of SEC Rule 206(4)-5 for investment advisers, such as
i. Apply relevant definitions under the Rule including what constitutes a covered contribution
ii. Recognize opportunities for relief under the Rule from SEC orders
iii. Identify ongoing litigation regarding the rule and possible outcomes
iv. Recognize the risks of an improper contribution by a covered person
c. Identify other federal pay-to-play rules (MSRB Rule G-37 for broker-dealers that underwrite municipal bonds and municipal advisors, and CFTC Rule 23.451 for swap dealers)
d. Identify state and local pay-to-play laws and their intersection with above federal pay-to-play rules
e. Identify methods for compliance, monitoring and testing of political contributions and activity to comply with the patchwork of strict-liability pay-to-play laws

Session Chairman:
Walter Zebrowski, JD, CPA, Principal, Hedgemony Partners
Chairman, Regulatory Compliance Association

Senior Fellow from Practice:
Ki Hong, JD, Partner, Skadden, Arps, Slate, Meagher & Flom, LLP

Guest Lecturers:

Kenneth Gross, JD, Partner, Skadden, Arps, Slate, Meagher & Flom, LLP
Ken Berman, JD, Partner, Debevoise
Lou Randazzo, JD, Municipal Securities and Public Pensions, SEC
Kevin Kelcourse, JD, Assistant Regional Director, SEC
Heather Traeger, JD Partner, O’Melveny & Myers

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