Bill Text: NY S05632 | 2011-2012 | General Assembly | Introduced

New York Senate Bill 5632 (Prior Session Legislation)

Introduced

Bill Title: Prohibits the use of placement agents or intermediaries by investment managers doing business with the common retirement fund.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO CIVIL SERVICE AND PENSIONS [S05632 Detail]

Download: New_York-2011-S05632-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5632
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                     June 8, 2011
                                      ___________
       Introduced  by  COMMITTEE  ON  RULES  --  (at request of the State Comp-
         troller) -- read twice and ordered printed, and  when  printed  to  be
         committed to the Committee on Rules
       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.
                                                                  LBD11511-04-1
       S. 5632                             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.