Legal and compliance
Pay to play rule
Also known as Rule 206(4)-5
A US rule that limits advisers from earning fees from a government client after certain political donations.
If the manager or certain employees give to officials who can influence a public plan, the adviser can be barred from receiving compensation from that plan for two years. It also restricts paying third parties to solicit government investors.
Why it matters when you raise
Check your team's political giving before you approach any public pension.
Related terms