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CALIFORNIA CORPORATE & SECURITIES LAW

Does A Political Yard Sign Really Violate The Investment Advisers Act?

“Congress shall make no law . . . abridging the freedom of speech . . . .” Doug Cornelius recently published this post reporting that the SEC staff is taking the position that the pay-to-play rule, Rule 206(4)-5, applies to political yard signs.  [After publishing this post, Doug Cornelius published this clarification.]  The SEC adopted the…

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Is A “Rule” An “Order” And Why Would Anyone Care?

Pay-to-Play Rule Challenged Doug Cornelius recently wrote about the dismissal of a lawsuit challenging the Securities and Exchange Commission’s anti “pay-to-play” rule under the Investment Advisers Act of 1940.  New York Republican State Comm. v. SEC, 2014 U.S. Dist. LEXIS 138964 (D.D.C. Sept. 30, 2014).  In a nutshell, the rule (206(4)-5) prohibits federally registered and…

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Governor Signs Flawed Placement Agent Bill

Yesterday, Governor Arnold Schwarzenegger signed AB 1743 (Hernandez).  As discussed in previous posts, this bill will required placement agents for funds and advisers seeking access to CalPERS to register as lobbyists.  As such, they will not be able to obtain success fees.  Marc Lifsher provides more background on AB 1743 in this Los Angeles Times article. The California…

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