-------- Original Message --------
Subject: Griffin Perry
Date: Mon, 17 Oct 2011 13:15:19 -0400
From: Ray Sullivan
To: wgselby@statesman.com <wgselby@statesman.com>


Griffin resigned the bank position a few weeks ago to ensure compliance with new SEC rules.  It was impossible for him be personally active in his father's presidential campaign and remain employed at the bank under the new SEC rules.

Financial services employees such as investment advisors are severely restricted by new SEC rules from participating in the campaigns of incumbent state and local officials like Governor Perry.  

Griffin Perry was a financial advisor and is now understandably involved in his father's presidential campaign activities.  Therefore he could not continue to be employed by the bank without jeopardizing a new SEC rules violation, which would have banned his employer from certain business in the state of Texas.    


Ray Sullivan
Communications Director
RickPerry.org, Inc.



-------- Original Message --------
Subject: Griffin
Date: Mon, 17 Oct 2011 17:40:32 -0400
From: Ray Sullivan
To: Gardner Selby <wgselby@statesman.com>


Here is the rule: http://www.sec.gov/rules/final/2010/ia-3043.pdf.  There's also an analysis of the new rule attached (excerpt below).  Griffin Perry was an investment advisor for Deutsche Bank in Dallas.  So his contribution of time and effort, and likely participation in campaign fundraising (e.g., speaking at fundraising events), would have likely triggered the new rule and resulting sanctions.  


The New SEC Rule

The most significant development in this area has been the enactment of SEC Rule 206(4)-5 (“Rule”), which went into effect earlier this year. The cornerstone of the Rule is a two-year ban on compensation if one of an adviser’s “covered associates” makes a political contribution in excess of a de minimis amount identified in the Rule to an official or candidate who has the ability to influence the hiring of investment advisers of a government entity. With the elimination of the 203(b)(3) “private adviser” registration exemption under Dodd-Frank, the Rule applies to virtually all domestic fund managers seeking to manage money on behalf of public pension funds.

The Rule is sweeping in scope. It covers all contributions to candidates who have or would have the ability to directly or indirectly influence the hiring of investment advisers. This includes officials who sit on a public pension fund board as well as those who have the authority to appoint individuals to such boards. The ban on compensation is an absolute prohibition on all compensation a fund manager would have otherwise been entitled to – including management fees and carried interest – and the exemptions are very limited, even for inadvertent violations.

The SEC Rule also includes a prohibition on indirect contributions through third parties, which creates certain complexity. For example, many Members of Congress have “Leadership PACs.” Although Members of Congress serve at the federal level, their Leadership PACs may make significant contributions to state candidates and political parties, thereby triggering a pay-to-play violation. In addition, although the SEC Rule generally restricts contributions to state and local candidates for office, it also applies to state officeholders running for federal office.[4] Thus, contributions to Presidential candidate Gov. Rick Perry or even federal party committees (e.g. DCCC, NRSC) under certain circumstances might trigger the Rule.



-------- Original Message --------
Subject: Re: Following up
Date: Wed, 19 Oct 2011 12:53:34 -0400
From: Ray Sullivan
To: wgselby@statesman.com <wgselby@statesman.com>


Griffin will be involved in every part of the campaign, including raising the funds and volunteers we need to defeat President Obama.
 
From: Gardner Selby [mailto:wgselby@statesman.com]
Sent: Wednesday, October 19, 2011 12:51 PM
To: Ray Sullivan
Subject: Following up
 
Ray:

I'm trying to narrow in on why the rule made Griffin Perry give up his job. In looking through the rule, I noticed this footnote 157, which says it's ok for someone working for such a firm to volunteer for a candidate--so long as they're not raising funds.

"A covered associate’s donation of his or her time generally would not be viewed as a [problematic] contribution if such volunteering were to occur during non-work hours.”

Anything more you want us to consider?

wgs
-- 

W. Gardner Selby
Editor, PolitiFact Texas
Austin American-Statesman
- Original Message --------
Subject: Re: Following up
Date: Fri, 21 Oct 2011 16:48:06 -0400
From: Ray Sullivan
To: Gardner Selby <wgselby@statesman.com>


Does the rule – in your view – allow Griffin to attend a luncheon fundraiser for or with his Dad?  What are "non-work hours?"



From: Gardner Selby <wgselby@statesman.com>
Date: Fri, 21 Oct 2011 16:38:29 -0400
To: Ray Sullivan
Subject: Following up

Ray:

...

The SEC says in its own description of the rule that employees of investment advisory firms are free to volunteer for campaigns.

Here's how I'd put it for now:

As much as donations are restricted, the rule still permits someone at an investment advisory firm to personally volunteer for a candidate: “A covered associate’s donation of his or her time generally would not be viewed as a contribution” in possible violation of the rule “if such volunteering were to occur during non-work hours,” the SEC’s description says. Another section says the rule “does not in any way impinge on a wide range of expressive conduct in connection with elections. For example, the rule imposes no restrictions on activities such as making independent expenditures to express support for candidates, volunteering, making speeches, and other conduct.”

LINK: http://www.sec.gov/rules/final/2010/ia-3043.pdf

Why did the rule make Griffin Perry quit?

Thanks again.

wgs
W. Gardner Selby
Editor, PolitiFact Texas
Austin American-Statesman

On 10/21/2011 3:48 PM, Ray Sullivan wrote:
Does the rule – in your view – allow Griffin to attend a luncheon fundraiser for or with his Dad?  What are "non-work hours?"



From: Gardner Selby <wgselby@statesman.com>
Date: Fri, 21 Oct 2011 16:38:29 -0400
To: Ray Sullivan <raysullivan@rickperry.org>
Subject: Following up

Ray:

I asked for an interview of Griffin Perry yesterday. I am asking again now.

The SEC says in its own description of the rule that employees of investment advisory firms are free to volunteer for campaigns.

Here's how I'd put it for now:

As much as donations are restricted, the rule still permits someone at an investment advisory firm to personally volunteer for a candidate: “A covered associate’s donation of his or her time generally would not be viewed as a contribution” in possible violation of the rule “if such volunteering were to occur during non-work hours,” the SEC’s description says. Another section says the rule “does not in any way impinge on a wide range of expressive conduct in connection with elections. For example, the rule imposes no restrictions on activities such as making independent expenditures to express support for candidates, volunteering, making speeches, and other conduct.”

LINK: http://www.sec.gov/rules/final/2010/ia-3043.pdf

Why did the rule make Griffin Perry quit?

Thanks again.

wgs
W. Gardner Selby
Editor, PolitiFact Texas
Austin American-Statesman

Visit our site: www.politifacttexas.com
We're also on Facebook and Twitter and so am I as twitter.com/gardnerselby
512-445-3644

On 10/19/2011 11:53 AM, Ray Sullivan wrote:
Griffin will be involved in every part of the campaign, including raising the funds and volunteers we need to defeat President Obama.
 
From: Gardner Selby [mailto:wgselby@statesman.com]
Sent: Wednesday, October 19, 2011 12:51 PM
To: Ray Sullivan
Subject: Following up
 
Ray:

I'm trying to narrow in on why the rule made Griffin Perry give up his job. In looking through the rule, I noticed this footnote 157, which says it's ok for someone working for such a firm to volunteer for a candidate--so long as they're not raising funds.

"A covered associate’s donation of his or her time generally would not be viewed as a [problematic] contribution if such volunteering were to occur during non-work hours.”

Anything more you want us to consider?

wgs
-- 

W. Gardner Selby
Editor, PolitiFact Texas
Austin American-Statesman

Visit our site: www.politifacttexas.com
We're also on Facebook and Twitter and so am I as twitter.com/gardnerselby
512-445-3644



-------- Original Message --------
Subject: Re: Following up
Date: Fri, 21 Oct 2011 18:24:30 -0400
From: Ray Sullivan
To: Gardner Selby <wgselby@statesman.com>


...

In any event, Griffin's former employer's counsel closely reviewed the new SEC rules and determined that Griffin could not work on his Dad's presidential campaign and remain employed at the bank.  The risk of SEC penalties against the bank were too real and significant.  The bank and Mr. Perry determined that his resignation was the best course of action to provide him the ability to be involved in every aspect of the presidential campaign and not run afoul of the new SEC rules.