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.
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