Employees in the investor relations departments of PE and hedge fund managers typically do not consider themselves “lobbyists.” But state and local regulators sometimes have a different view. This guest article by Covington lawyers Zachary G. Parks, Derek Lawlor and Kimberly Railey explains the types of investor relations activities that could trigger lobbying requirements; summarizes the state lobbying registration and reporting requirements that may apply to investment firms; and describes the potential penalties for violations of the rules. It also highlights elements of investment firms’ compliance programs that can help ensure they remain on the right side of these laws and includes a list of practical questions CCOs can consider. See our two-part series on clashes between investor relations and compliance: “Contexts and Reasons for the Strained Relationship and Potential Ramifications” (Mar. 16, 2021); and “Practical Tips for Building a Strong Partnership Between the Teams” (Mar. 23, 2021).