CalPERS President Rob Feckner called on his fellow board members to enact stronger rules to classify placement agents as lobbyists and tighten regulations on their behavior.
Mr. Feckner’s comments today come as the latest salvo in efforts requiring the board of the $196.6 billion California Public Employees’ Retirement System, Sacramento, to better police itself. It comes amid growing accusations that former CalPERS board members have earned tens of millions of dollars as placement agents by helping external investment advisers win contracts.
Board members on Nov. 16 are expected to approve new rules ordered by the California Legislature requiring the disclosure of fees earned by placement agencies from money managers and expanding restrictions on when former board members can become placement agents.
But Mr. Feckner asked for stronger rules, such as requiring that placement agent fees not be linked to the awarding of contracts by the CalPERS board, prohibiting placement agents from contributing to the campaign of CalPERS board members, and requiring agents to make additional financial disclosures.
“By enacting this change, our members, employers and the public will be able to rest assured that all who serve the system do so with transparency, ethics and accountability,” Mr. Feckner said in a statement.