ARTICLE
20 August 2026

SEC Submits Proposed Rule Regarding Investment Adviser Pay-to-Play Rule To OIRA For Review

SA
Skadden Arps Slate Meagher & Flom

Contributor

The traits that fueled Skadden’s rise from a New York startup to a global powerhouse — innovative, collaborative, client-centric — continue to define our firm culture. We remain focused on developing extraordinary attorneys who work together as a team to deliver the highest quality advice and best outcomes for clients.

The Securities and Exchange Commission has submitted a proposed rule to the Office of Information and Regulatory Affairs concerning amendments to Rule 206(4)-5, the investment adviser pay-to-play rule. While the specific substance of the proposal remains undisclosed, the SEC has indicated it will address longstanding concerns from across the political spectrum regarding this rule. The proposal could range from targeted amendments to full repeal of the existing pay-to-play restrictions.
United States Finance and Banking
Skadden Arps Slate Meagher & Flom are most popular:
  • within Finance and Banking, Privacy and International Law topic(s)
  • in United States

On August 12, 2026, the Office of Information and Regulatory Affairs (OIRA) received from the Securities and Exchange Commission (SEC) a proposed rule regarding Rule 206(4)-5, the investment adviser pay-to-play rule. As noted in our July 14, 2026, alert, the SEC added “pay-to-play reform” last month as part of its 2026 update to its Regulatory Flexibility Agenda.

OIRA is required to review federal rulemakings deemed “significant regulatory actions” at both the proposed and final rule stages. OIRA has up to 90 days to review a proposed rule, although the office often completes its review in less than a month. Following OIRA’s review, the SEC could issue a notice of proposed rulemaking.

The substance of the proposed rule is not yet known. Although the SEC’s description of the proposed rule characterizes the proposal as an amendment, that does not necessarily foreclose full repeal of Rule 206(4)-5. In a comment to Reuters, a spokesperson for the SEC stated that the SEC “is heeding years of complaints from across the political spectrum and will consider a proposal to address these issues and reform” Rule 206(4)-5.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

[View Source]

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More