Bill Text: NY S04927 | 2015-2016 | General Assembly | Introduced
Bill Title: Prohibits the use of placement agents or intermediaries by investment managers doing business with the common retirement fund.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-01-06 - REFERRED TO CIVIL SERVICE AND PENSIONS [S04927 Detail]
Download: New_York-2015-S04927-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 4927 2015-2016 Regular Sessions I N S E N A T E April 23, 2015 ___________ Introduced by Sen. GOLDEN -- (at request of the State Comptroller) -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the retirement and social security law, in relation to prohibiting the use of placement agents by managers doing business with the common retirement fund THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 425 of the retirement and social security law is 2 renumbered section 426 and a new section 425 is added to read as 3 follows: 4 S 425. USE OF PLACEMENT AGENTS OR INTERMEDIARIES PROHIBITED. 1. THE 5 FUND SHALL NOT ENGAGE, HIRE, INVEST WITH OR COMMIT TO AN INVESTMENT 6 MANAGER THAT IS USING THE SERVICES OF A PLACEMENT AGENT OR INTERMEDIARY 7 TO ASSIST SUCH INVESTMENT MANAGER IN OBTAINING INVESTMENTS BY THE FUND 8 NOR SHALL THE FUND ENGAGE, HIRE, INVEST WITH OR COMMIT TO AN INVESTMENT 9 MANAGER WITHOUT OBTAINING FROM SUCH INVESTMENT MANAGER A CERTIFICATION 10 IN THE FORM AND MANNER PRESCRIBED BY THE FUND STATING THAT SUCH INVEST- 11 MENT MANAGER HAS NOT USED THE SERVICES OF A PLACEMENT AGENT OR OTHER 12 INTERMEDIARY TO ASSIST SUCH INVESTMENT MANAGER IN OBTAINING INVESTMENTS 13 BY THE FUND. 14 2. FOR THE PURPOSES OF THIS SECTION: 15 (A) "INVESTMENT MANAGER" SHALL MEAN ANY PERSON, OTHER THAN AN EMPLOYEE 16 OF THE COMPTROLLER, OR ENTITY ENGAGED BY THE COMMON RETIREMENT FUND TO 17 MANAGE A PART OR ALL OF AN INVESTMENT PORTFOLIO OF THE FUND. "MANAGE" 18 SHALL INCLUDE, BUT IS NOT LIMITED TO, THE ANALYSIS OF PORTFOLIO HOLD- 19 INGS, AND THE PURCHASE, SALE, AND LENDING THEREOF. ANY INVESTMENT MADE 20 BY THE FUND PURSUANT TO SUBDIVISION SEVEN OF SECTION ONE HUNDRED SEVEN- 21 TY-SEVEN OF THIS CHAPTER SHALL BE DEEMED TO BE THE INVESTMENT OF THE 22 FUND IN SUCH INVESTMENT ENTITY RATHER THAN IN THE ASSETS OF SUCH INVEST- 23 MENT ENTITY. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03007-01-5 S. 4927 2 1 (B) "PLACEMENT AGENT OR INTERMEDIARY" SHALL MEAN ANY PERSON OR ENTITY, 2 INCLUDING REGISTERED LOBBYISTS, DIRECTLY OR INDIRECTLY ENGAGED AND 3 COMPENSATED BY AN INVESTMENT MANAGER, OTHER THAN AN EMPLOYEE OF THE 4 INVESTMENT MANAGER, TO ASSIST THE INVESTMENT MANAGER IN OBTAINING 5 INVESTMENTS BY THE FUND WHETHER COMPENSATED ON A FLAT FEE, A CONTINGENT 6 FEE, OR ANY OTHER BASIS. EMPLOYEES OF AN INVESTMENT MANAGER AND ITS 7 AFFILIATES ARE EXCLUDED FROM THIS DEFINITION UNLESS THEY ARE EMPLOYED 8 PRINCIPALLY FOR THE PURPOSE OF SECURING OR INFLUENCING THE DECISION TO 9 SECURE A PARTICULAR INVESTMENT TRANSACTION OR INVESTMENT BY THE FUND. 10 S 2. This act shall take effect immediately.