On February 18, 2011, the ICI published a memorandum from private counsel summarizing the results of a six state (California, Colorado, Connecticut, Massachusetts, New York and Texas) survey on the potential effects that the laws of these states could have on an adviser’s ability to restrict or ban its employees’ political contributions. Based on the information in the memorandum, the ICI noted that when developing “pay-to-play” policies and procedures pursuant to the recently adopted SEC rule, advisers should be mindful of state employee protection laws and appropriately tailor any limits imposed on employee political contributions to avoid violating such laws, including adequately protecting the privacy interests of their employees and ensuring that any action taken against an employee in connection with political contributions relates to a violation of the adviser’s policies and procedures adopted to implement the SEC rule. In addition, the ICI noted that advisers should be aware that some state laws may actually limit an adviser’s ability to ban employee political contributions.