Bill Text: NY A07909 | 2011-2012 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-01-04 - referred to governmental employees [A07909 Detail]

Download: New_York-2011-A07909-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7909
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 23, 2011
                                      ___________
       Introduced  by  M. of A. ABBATE -- (at request of the State Comptroller)
         -- read once and referred to the Committee on Governmental Employees
       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
       A. 7909                             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.