Managers running assets for CalPERS would be required to disclose compensation given to their employees who solicit business from the pension fund, as well as any compensation given to placement agents and other third parties, according to a proposed policy.
The policy, posted on the website of the California Public Employees’ Retirement System, Sacramento, will be considered by the $175 billion plan’s investment policy subcommittee at its meeting on Friday. If approved by the subcommittee, the proposed policy would go before the investment committee on May 11.
Also required would be information about any compensation paid to investment management company employees earning more than $100,000 a year who are paid based on investment commitments from CalPERS.
The proposal would also require descriptions of all services being received from placement agents, as well as copies of all agreements between managers and placement agents.
It also would require information about whether the placement agent is registered with the SEC, FINRA or other regulatory agencies, and if the agent is registered as a lobbyist.
Any current or former CalPERS board members, employees or consultants who suggested retaining a placement agent would also have to be disclosed.
