BlackRock Still Feels Impact of the 2016 Primaries
A $2,700 donation to the John Kasich presidential campaign may prevent BlackRock from collecting approximately $37 million in fees from the state of Ohio, Reuters reported.
The newswire cited a Securities and Exchange Commission filing from the global asset manager requesting an exception to the federal securities rule that forbids companies or their executives from donating to government officials who could influence the hiring of a fund manager or have the power appoint someone who could do so.
Such donations typically result in asset managers not being able to collect its fees for two years.
Ohio state government’s use of BlackRock to manage assets “substantially” pre-dates to the donation made by Mark Weidman, a senior managing director, global head of iShares and index investments at BlackRock, according to the asset manager’s filing.
BlackRock’s filing also noted that the regulator had granted exceptions to the rule in the past and its application was “‘fair and reasonable’ and consistent with the intent of the relevant rule,” a BlackRock spokesperson told Reuters in an emailed statement.
The SEC has not yet decided the matter and declined to comment.
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