Federal regulations limit certain employees from contributing to political campaigns.
If you work for a bank, you may want to reconsider donating to a political campaign. Some regulations limit financial employees from doing so.
Major financial institutions are doubling down on ensuring their employees follow the rules.
On Aug. 6, Citigroup sent a memo to employees reminding them to seek approval for donations to the Harris-Walz campaign. This policy impacts employees working in investment banking, wealth management, and other divisions. According to Business Insider, there’s an exception for exempt employees in the consumer banking division.
Breaking the rules with even the smallest donation can cost financial institutions tens of thousands.
The regulations in place are not just implemented by the SEC. Other financial regulatory bodies have similar rules, including the Commodity Futures Trading Commission and the Municipal Securities Rulemaking Board. According to Yahoo Finance, the rules generally prohibit financial firms from providing services to state and local governments for two years after employees make a political contribution to relevant officials.
SEC commissioner Hester Peirce has criticized the pay-to-play rule following the SEC’s ruling to fine four investment advisors for one-time, small donations. She dissented from the verdict and wrote, “I urge the Commission to revisit the Pay-to-Play Rule to ensure that it does not hinder political engagement that is unconnected to an adviser’s quest for government clients.”
Source: Black Enterprise
