The SEC is watching
The SEC is watching closely. The media has stories about pay-to-play rule violations involving broker-dealers, private equity firms, and other financial entities. If you contribute to the campaign of a governor, state senator, or mayor while simultaneously receiving advisory fees from city and state pension funds, you could face severe consequences. Violations can lead to substantial fines and penalties—sometimes amounting to hundreds of thousands of dollars—but only if the Securities and Exchange Commission agrees to settle the matter. Non-compliance can result in significant legal and financial repercussions, making it crucial to stay vigilant and adhere strictly to regulations.
Avoiding such pitfalls requires diligent monitoring and adherence to compliance protocols. Ensuring that your business practices align with SEC rules and regulations protects your firm from hefty fines and upholds your reputation in the industry. Implementing robust compliance measures and regularly reviewing your activities can help safeguard against inadvertent violations and maintain your standing with regulatory bodies.
Why be that firm, when Patrina makes compliance so easy and cost-effective
Investment Advisor Act Rule 206 (4)-5 and MSRB Rule 6-37 outline the pay-to-play rule parameters in great detail. If your firm deals with municipal securities or receives fees from government entities, it is crucial to comply with these regulations.
One of eight powerful Patrina Compliance modules built on the industry’s easiest-to-use interface, the Patrina Political Contributions Module seamlessly integrates political contribution disclosure, approval, and tracking from a single Patrina dashboard — regardless of whether you are a one-branch shop or a multinational.
By leveraging Patrina’s solution, you simplify the complexity of compliance, reducing the risk of violations and associated penalties. Our module helps you stay aligned with regulatory requirements and enhances operational efficiency, allowing you to focus on your core business activities without the constant worry of compliance issues.
One platform to build and maintain a culture of compliance
Do business with municipal securities? Collect fees from government entities? Then, do the compliance math: Weak “pay-to-play” policies = Big “pay-a-fine” exposures.
Disclose. Approve. Track.
With Patrina’s Political Contributions module built-in workflows, you can easily:
- Disclose, approve (or deny), and track planned and unapproved contributions;
- Divulge “Monetary” or “In-Kind” contributions;
- Deliver contributions to appropriate parties for review; and
- Produce complete audit trails of your review/approval processes; and
- Generate customizable reports on demand.
Patrina’s that simple
Point. Click. Compliance..
So, when the regulators call, will you be ready?
Click here to schedule your Patrina demo or call +1.212.233.1155 today and we’ll help you do more, spend less, and reduce risk!
