Ethics & Professional Responsibility: Investment Advisers & Campaign Donations

This IAR Continuing Education course provides an overview of the SEC’s Rule 206(4)-5, commonly referred to as the “Pay-to-Play” rule. Designed for investment adviser representatives, the course explores the rules origins, key provisions, and its critical role in preventing unethical practices within the industry. Attendees will gain practical insights into how to comply with the rule, update internal policies, and avoid the severe penalties associated with violations. This course provides one credit in the Ethics & Professional Responsibility category.

Course Objectives

1. Understand the Purpose of SEC Rule 206(4)-5: Attendees will gain a clear understanding of the intent behind the rule and its role in curbing unethical “pay-to-play” practices.
2. Identify Key Provisions of the Rule: Attendees will be able to identify and explain the main components of Rule 206(4)-5, including restrictions on political contributions and solicitation.
3. Implement Compliance Measures: Attendees will learn practical steps to update their firm’s policies and procedures to ensure compliance with Rule 206(4)-5.
4. Recognize the Consequences of Non-Compliance: Attendees will understand the potential penalties and reputational risks associated with violating the rule.