Appeals court rejects challenge to SEC 'pay-to-play' rule

By The Associated Press | Posted - Aug. 25, 2015 at 11:01 a.m.

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON (AP) — A federal appeals court has thrown out a lawsuit brought by Republican Party officials in two states challenging a federal rule that restricts campaign contributions of investment advisers.

The U.S. Court of Appeals for the District of Columbia Circuit said party officials in New York and Tennessee had missed a 60-day deadline for contesting the rule approved by the Securities and Exchange Commission in 2010.

The so-called pay-to-play rule requires investment advisers to wait two years before offering services to government clients if they contribute to the campaign of an official with power to influence the adviser's hiring.

GOP officials argued that the rule restricts First Amendment free-speech rights.

A federal district court had previously tossed out the lawsuit, saying it had to be filed in the appeals court.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press


    Catch up on the top news and features from, sent weekly.
    By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

    KSL Weather Forecast