Pitfalls of the 2020 Election

Not only is the 2020 election appearing to offer a record-breaking number of candidates, it may also offer 3PM’s, asset managers and other registered persons a potential pitfall by violating SEC and/or MSRB prohibitions on political contributions. There are already a large number of Democrats announced for President, hints of potential Republicans considering a challenge to the President, possible Independent candidates and others contemplating a run for Senate or Congress. Before you get out your checkbook or click that DONATE button, be sure that your favorite candidate is not currently a state governmental official overseeing pension funds. At least one of the announced Democratic candidates is a sitting governor. If you are a 3PM that is marketing to pension funds or an asset manager seeking business from pension funds, BEWARE. A contribution to a candidate that is currently a state official could violate SEC and MSRB restrictions on political contributions, potentially causing your firm to lose pension fund business or forfeit income from pension fund clients. I suggest that now is a good time to remind your staff of those restrictions and reaffirm company policies and restrictions on political contributions.

For more information contact:
Susan E. Bryant, of Counsel
Phillips Murrah P.C
Corporate Tower, 13th Floor
Oklahoma City, OK 73102

Phillips Murrah is an Industry Associate in 3PM

Donna DiMariaRegulatory