Placement agents that do business with California retirement systems, including CalPERS and CalSTRS, will have to comply with the same California reporting and ethics rules as lobbyists under a bill signed Thursday by Gov. Arnold Schwarzenegger.
Placement agents that do business with the $210.7 billion California Public Employees’ Retirement System, Sacramento, or the $131.8 billion California State Teachers’ Retirement System, West Sacramento, will be required to submit quarterly compensation reports, and their pay cannot be contingent on the outcome of an investment action. It also bans campaign contributions to elected board members.
External money manager employees, officers or directors are excluded from the law.
Officials at CalPERS and CalSTRS must each send a report on the use of placement agents in connection with investments by Aug. 1, 2012.
Legislation co-sponsors CalPERS, state Treasurer Bill Lockyer and state Controller John Chiang in a release Friday applauded the bill’s signing. Messrs. Lockyer and Chiang are ex-officio CalPERS board members.
“We’re grateful to Controller Chiang, Treasurer Lockyer and Assembly Member (Ed) Hernandez for their work in the development of this important law and for the governor’s signing of the law,” said CalPERS board President Rob Feckner in the release.