SEC Commissioner Peirce Advocates for Rescission of Investment Adviser Pay-to-Play Rule
SEC Commissioner Hester M. Peirce has issued a statement on September 3, 2026, discussing the Commission's proposal to rescind Investment Advisers Act rule 206(4)-5, commonly known as the 'Pay-to-Play Rule.' Commissioner Peirce expressed strong support for eliminating the rule, citing concerns about its impact on First Amendment protections of political speech. She highlighted that while the rule aims to prevent campaign donations from influencing adviser selection, its broad scope and narrow exceptions have effectively restricted political speech. Peirce noted that the rule has led to advisers prohibiting political contributions outright, an unintended consequence. She emphasized that even without this specific rule, other laws, including antifraud provisions of the Advisers Act, would still prohibit pay-to-play practices, and other government bodies are equipped to address political corruption. 
