Partner Nathan Greene (New York-Investment Funds) and associate Will Forster (New York-Investment Funds) co-authored an article, titled "Political Contribution Rules for Investment Advisers: A Question of Constitutionality," that was published in Bloomberg BNA's Securities Regulation & Law Report on April 20.
In their article, the authors examine Investment Advisers Act Rule 206(4)-5, which regulates campaign contributions by investment advisers. As a result of the rule, many large investment adviser firms ban state and local political contributions by their employees. Although initially receiving little scrutiny, the rule has recently been subject to constitutional challenges at the same time that the SEC has brought action to enforce it.
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