Date

To:

Re: Confirmation of Compliance with Securities and Exchange Rules

The following letter explains the new SEC rules and their impact on IVCA-PAC’s contribution policy. IVCA-PAC no longer can make contributions to any candidate or elected official who has the ability to influence the selection of an investment adviser for any government entity. To ensure full compliance with the SEC regulations, IVCA-PAC now requires all candidates and elected officials to sign this letter certifying that they do not fall within the prohibited class prior to its making a contribution to that candidate or official. Please review this letter, sign it and return it by fax to 847-786-4550. Questions can be directed to Penny Cate via email penny.cate@comcast.net

As you may be aware, the Securities and Exchange Commission (the “SEC”) issued new rules (the “SEC Rule”) severely restricting the making of political contributions to certain State of Illinois officials to curtail “pay-to-play” practices. The SEC Rule imposes severe penalties on money managers, such as venture firms and private equity firms (the “Investment Advisers”), if the Investment Adviser or any of its “covered associates” makes a political contribution to elected officials who may be able to influence directly or indirectly pension commitments and investments in funds sponsored by such Investment Advisers.

The Illinois Venture Capital Political Action Committee (the “IVCA-PAC”) believes that working with the State of Illinois (the “State”) Legislature to address issues that impact its constituents is part of a good relationship. Historically, the IVCA-PAC has collected contributions from its members and has then made contributions to incumbents of and candidates for elective office. The SEC Rule includes punitive damages if it is violated and the need to protect our members’ (as well as your) reputation is a priority. Accordingly, prior to accepting a campaign contribution from the IVCA-PAC, we require that you confirm by signing below the following statements to provide assurance that that our contribution would not be construed as being an indirect violation of the new SEC Rule:

• You are not an incumbent of, or candidate or successful candidate for, an elective office:

o that is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser by a government entity; or
o That has the authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser by a government entity.
o “Government entity” for this purpose means any state or political subdivision of a state, including:
  • Any agency, authority or instrumentality of the state or political subdivision;
  • A pool of assets sponsored or established by the state or political subdivision or any agency, authority or instrumentality thereof, including, but not limited to a “defined benefit plan” or a state general fund;
  • A plan or program of a government entity; and
  • Officers, agents or employees of the state or political subdivision or any agency, authority or instrumentality thereof, acting in their official capacity.
  • All public pension funds

• You are not and you do not play a controlling or similar role, or otherwise provide material assistance in the direction of, the election committee for an incumbent, candidate or successful candidate described above.

• You agree to notify IVCA -PAC and return the contribution immediately if you become aware of an oversight that might cause this contribution to have been made in violation of the SEC rule.



______________________________ State official or candidate
________________________________ IVCA-PAC Officer




©2014 Illinois Venture Capital Association. All rights reserved. | Sitemap | FAQs : Venture Capital and Private Equity | Contact IVCA