The California Public Employees’ Retirement System adopted a new policy today that requires fund managers to disclose fees and other information about the placement agents they hire to seek CalPERS’ investments.
It’s a significant move in part because CalPERS is the nation’s largest public pension fund, with approximately $177 billion in market assets. Board members began discussing a policy after the New York pension fund-raising scandal erupted.
Under the new rules, fund managers would have to disclose information including agents’ identities, resumes of key people, description of compensation and services, and copies of agreements. The policy also requires placement agents to register as broker-dealers with the Securities and Exchange Commission or the Financial Industry Regulatory Authority.
Rob Feckner, CalPERS Board President, says the board adopted the policy because: “We want to know who’s being hired, how much they’re being paid, what they’re paid for, and who pays them.”
Full release is here: http://www.calpers.ca.gov/index.jsp?bc=/about/press/pr-2009/may/adopts-placement-agent-policy.xml