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SEC rule hits Romney fundraising

April 23, 2012: 12:31 PM ET

The Wall Street Journal reports that Mitt Romney's new "Victory Fund"  -- a joint effort between the campaign and the Republican National Committee -- has encountered a minor stumbling block.

Deep pocketed Wall Street donors, many of whom are thought to favor Romney, are being warned by their firms to limit donations. Here's the Journal:

"[The Victory Fund] asks donors to give as much as $75,800, including donations to Mr. Romney's primary and general-election efforts and the Republican National Committee.

Some $40,000 of an individual's $75,800 contribution would go to state GOP accounts in Idaho, Massachusetts, Oklahoma and Vermont—the legal maximum of $10,000 for each. These funds are intended to help the Romney presidential campaign.

Presidential candidates in the past have asked donors to give money to state parties to help fund their election effort. But Mr. Romney's inclusion of state campaigns has raised a red flag with some Wall Street firms because of new SEC rules enacted after 'pay to play' scandals.

Lawyers for investment companies have warned their clients that a donation to the Romney Victory fund could trigger SEC rules meant to bar investment advisers from influencing elections in states where they are trying to win business."

The Journal reports that the Romney campaign is working on a "workaround." CNNMoney has reached out to the campaign for more details about what that might look like, and will update when we hear back. SEC rules on pay-to-play, issued in 2010, are available here.

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About This Author
Charles Riley
Charles Riley
Reporter, CNNMoney

Charles Riley lives and works in Hong Kong, where he covers markets, economics and other high-impact stories across Asia. He previously worked for CNNMoney in New York and CNN in Washington. He tweets @CRrileyCNN

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