The SEC enacted its new Pay-to-Play Rule to make sure political campaign contributions have no bearing on who receives financial advisory contracts granted by state and local governments. There has been much confusion about how broadly the SEC will interpret the rule, and a number of RIA companies reacted by telling their agents to stop contributing to state PACs altogether.
Sharing your IFAPAC contribution with both your state IFAPAC and your federal IFAPAC is in the best interests of you and your clients. Accordingly, it is imperative that you take action to make sure your contribution is shared with your state IFAPAC – if your company or broker-dealer permits. Here’s our request of you:
- Contact your company or broker-dealer compliance office(s) to find out if you can contribute to both your state association IFAPAC and the national IFAPAC.
- If you can, go to the Online IFAPAC Directive and – under “please select one of the following options” – check the first box (“Please continue to share my IFAPAC contribution between NAIFA’s federal PAC and my NAIFA state association PAC.”) Or, go to IFAPAC Directive, print a copy of the Directive, complete it and fax it to 703-770-8151. (If your compliance office tells you that you can contribute only to NAIFA’s federal PAC, check the second box.)
IFAPAC provides individual NAIFA members an opportunity to be actively engaged in the political process and it is vital to NAIFA’s advocacy efforts. Federal and state legislative and regulatory issues, including threats to the tax status of insurance products, could profoundly impact your clients and the way you do business. Even if you don’t plan to contribute to IFAPAC today, you should go ahead and make your selection as soon as possible, so you don’t need to worry about the Directive when you are ready to make your contribution. If you are a monthly bank draft contributor, it is imperative that you make your selection immediately, so that your May IFAPAC contribution can be shared with your state IFAPAC, if permitted by your company or broker-dealer.
To print a copy of the IFAPAC Directive to send back to NAIFA, visit here today.
NAIFA Staff Contact:
Magenta Ishak, Assistant Vice President, Political Affairs;
or Angel Goodson, Political Director - IFAPAC.