Who does finra 3210 apply to?
The purpose of Rule 3210 is to govern accounts opened or established by advisors and brokers at firms other than the member firm where they are employed or registered. Accounts that financial advisors and brokers have with their employers are easily monitored.
Can Financial Advisors make political contributions?
Practice Tip: In the absence of State or Local Government official involvement, advisers can approve political contributions above the de minimis thresholds without consequence under the Rule. US Federal offices such as the president, vice president or US Congress are out of scope in that case.
What is the SEC pay to play rule?
The rule makes it unlawful for an investment adviser to receive compensation for providing advisory services to a government entity for a two-year period after the adviser or any of its covered associates makes a political contribution to an official of a government entity that is in a position to influence the award …
What is a Rule 3210 letter?
Rule 3210 requires financial advisors to make a request and obtain consent from the FINRA member firm they work for to keep their accounts somewhere else. It also requires a disclosure letter to the outside firm when a securities industry professional opens an account.
How much can a broker dealer contribute to a political campaign?
make contributions of up to $350 per election per candidate for state or local office if the contributor is entitled to vote for the candidate, and up to $150 per election per candidate if the contributor is not entitled to vote for the candidate.
What is a covered associate?
A “covered associate” broadly includes (1) a general partner, managing member, executive officer or other individual with a similar status or function; (2) any employee who solicits a governmental entity for the adviser (and any person who supervises, directly or indirectly, such an employee); or (3) a political action …
Is pay-to-play legal?
“Pay-to-play” laws regulate political contributions made by persons seeking or holding government contracts. These laws, which impact all types of government contractors, often reach beyond corporate and PAC contributions and apply to contributions by directors, officers, and sales employees, and even their spouses.
Who is subject to pay-to-play?
In connection with political contributions, registered investment advisers, certain exempt reporting advisers and foreign private advisers (collectively referred to herein as “advisers”),1 as well as their “covered associates”2 (which is broadly defined), are subject to Rule 206(4)-5 of the Advisers Act, otherwise …
When did the FINRA pay to play rule become effective?
On August 20, 2017, rules that are highly similar and complementary to the SEC Pay-to-Play Rule became effective for most FINRA member broker-dealers: FINRA Rules 2030 (Engaging in Distribution and Solicitation Activities with Government Entities) and 4580 (Books and Records Requirements for Government Distribution and Solicitation Activities).
Can a covered member be exempt from a FINRA prohibition?
It shall be a violation of this Rule for any covered member or any of its covered associates to do anything indirectly that, if done directly, would result in a violation of this Rule. FINRA, upon application, may conditionally or unconditionally exempt a covered member from the prohibition described in paragraph (a).
Are there limits on political contributions made before August 20, 2017?
The prohibitions and “look back” will not be triggered by contributions made prior to August 20, 2017. [iii] If the individual is a state or local official at the time a contribution is made, but is running for federal office (i.e. U.S. Senate or president), the limitations of the rule would also still apply.
Can a donation of time be considered a contribution to FINRA?
FINRA does not consider a donation of time by an individual to be a contribution, provided the FINRA member has not solicited the individual’s efforts and the FINRA member’s resources, such as office space and telephones, are not used.