The US Securities and Exchange Commission (SEC) recently took action to curb pay-to-play abuses with respect to investment advisory services for any “plan or program of a government entity”; essentially, any state or local pension funds, retirement systems or other government plans (all referred to herein as government plans). On June 30, 2010, the SEC adopted Rule 206(4)-5 (the Rule) under the Investment Advisers Act of 1940 (Advisers Act),1 which had been under consideration for the past year. Investment advisers are cautioned that the Rule does not preempt current or future state or local restrictions on similar activities. As a result, in addition to complying with the Rule, investment advisers should confirm whether other state or local restrictions apply to each government plan investment.2