Jeffrey Blumberg Discusses Compliance Industry Concerns Following Walz Vice President Nomination With FundFire

In the article “Walz’s VP Bid has Compliance Teams on Alert,” investment management partner Jeff Blumberg spoke with FundFire about concerns from asset managers doing business with Minnesota’s state pension system following Governor Tim Walz’s bid for vice president.

FundFire noted that asset managers operating within the Minnesota State Board of Investment (MSBI), which Walz chairs as governor, worry they could end up in trouble if employees make contributions that exceed the $350 limit set by the Securities and Exchange Commission under its 2010 pay-to-play rule.

Blumberg noted that firms whose covered employees exceed the contribution limit could be prohibited from receiving fees from the state for two years and from bidding on future business, as well as be forced to return the fees it received in the past.

"If they find out after the fact, they're going to make you remit that back to the client, and then there will be a fine, no question, because this is a compliance failure," he said.