Bill Text: NY S04761 | 2017-2018 | 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 (Republican 1-0)

Status: (Introduced - Dead) 2018-06-13 - SUBSTITUTED BY A3137 [S04761 Detail]

Download: New_York-2017-S04761-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4761
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 27, 2017
                                       ___________
        Introduced  by  Sen.  GOLDEN -- (at request of the State Comptroller) --
          read twice and ordered printed, and when printed to  be  committed  to
          the Committee on Civil Service and Pensions
        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. The retirement and social security law is amended by adding
     2  a new section 424-a to read as follows:
     3    § 424-a. Use of placement agents or intermediaries prohibited.  1. The
     4  fund shall not engage, hire, invest with  or  commit  to  an  investment
     5  manager  that is using the services of a placement agent or intermediary
     6  to assist such investment manager in obtaining investments by  the  fund
     7  nor  shall the fund engage, hire, invest with or commit to an investment
     8  manager without obtaining from such investment manager  a  certification
     9  in  the form and manner prescribed by the fund stating that such invest-
    10  ment manager has not used the services of a  placement  agent  or  other
    11  intermediary  to assist such investment manager in obtaining investments
    12  by the fund.
    13    2. For the purposes of this section:
    14    (a) "investment manager" shall mean any person, other than an employee
    15  of the comptroller, or entity engaged by the common retirement  fund  to
    16  manage  a  part  or all of an investment portfolio of the fund. "Manage"
    17  shall include, but is not limited to, the analysis  of  portfolio  hold-
    18  ings,  and  the purchase, sale, and lending thereof. Any investment made
    19  by the fund pursuant to subdivision seven of section one hundred  seven-
    20  ty-seven  of  this  chapter  shall be deemed to be the investment of the
    21  fund in such investment entity rather than in the assets of such invest-
    22  ment entity.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06993-01-7
        S. 4761                             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    § 2. This act shall take effect immediately.