SEC proposes rescinding anti-corruption rule that bars pay-to-play pension fund schemes
Paul Atkins' agency wants to eliminate two-decade-old restrictions on private equity donations to officials overseeing public pension billions.
What to know
- The SEC proposes eliminating a rule born from early-2000s scandals in which private equity firms donated millions to officials to secure multibillion-dollar public pension fund contracts.
- Public pensions alone hold $9 trillion in assets; private equity firms currently manage over 40 percent of all public and private pension fund assets.
- Atkins argues the rule suppresses political speech and burdens firms; critics say it directly prevents corruption and ensures pension managers are chosen on merit.
- Without the rule, investment firms would be free to resume buying political access to Americans' retirement accounts.
Paul Atkins SEC chairmanBenjamin Schiffrin Director of securities, Better MarketsLeon Black Billionaire founder of Apollo Management
How it unfolded 2 developments, newest first · click a bar or a number to jump posts
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Better Markets director rejects Atkins' justification, defends rule as corruption prevention
Benjamin Schiffrin, director of securities at Better Markets think tank, issued a written statement rejecting Atkins' argument. He emphasized the rule's original intent and effect, quoting the SEC's own 2010 language describing it as combating pay-to-play arrangements.
“Not so. It has resulted in the suppression of corruption.”
— Benjamin Schiffrin -
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The SEC quietly published a proposal to rescind a measure that prevents private equity firms from buying access to billions in pension funds that belong to public employees like teachers and police.
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SEC chairman Paul Atkins proposes rescinding pay-to-play rule
The SEC quietly published a proposal to rescind the pay-to-play measure. Atkins stated that the rule has "needlessly" burdened investment firms, led to penalties for "small, often impulsive" donations, and has "resulted in the suppression of political speech," according to his written statement.
“has "needlessly" burdened these firms and led to serious penalties for "small, often impulsive" donations, and has "resulted in the suppression of political speech."”
— Paul Atkins -
The SEC wants to scrap a key anti-corruption rule targeting private equity https://www. motherjones.com/politics/2026/ 09/sec-pay-to-play-rule-private-equity-apollo-carlyle-quadrangle-pension-funds/?utm_source=flipboard&utm_medium=activitypub Posted into Political News @ political-news-motherjonesmag
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background
CalPERS uncovers $40 million Apollo scheme to secure $3 billion in pension investments — The California Public Employees' Retirement System discovered that a former board member had accepted over $40 million from Apollo Management in exchange for directing approximately $3 billion in CalPERS pension investments to the firm. The board member also funneled at least $250,000 in gifts to the CalPERS CEO and paid for meals, travel, and part of his wedding.
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background
SEC adopts pay-to-play rule following pension fund corruption scandals — In response to schemes where Wall Street firms made large donations and secret payments to state and local officials to secure lucrative public pension fund management contracts, the SEC established the rule approximately two decades before 2026. The regulation prevents asset managers from managing money for government entities—pensions and public school funding—for two years after they donate to elected officials overseeing those funds.