The SEC is considering changes in a proposal - strongly opposed by some fund companies - designed to stop firms from contributing to government officials in an effort to win business managing government employee pension plans.

The SEC may modify its so-called pay-to-play proposal, according to Paul Roye, director of the SEC's division of investment management. That proposal would effectively bar money management firms from doing government business for two years if key company executives contribute more than $250 to elected officials or candidates who could influence the selection of who manages government employee pension money.

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