Public pension systems are under increased scrutiny from the public, regulators and legislative bodies. In addition to the SEC's pay-to-play rule, many states and localities have adopted requirements that are applicable to individuals and entities that solicit public pension systems to retain them as investment advisers/managers or to invest in sponsored private funds.
The requirements applicable to state and local retirement systems within a given state may differ. These requirements may, among other provisions, require marketing staff and third party marketers to register as lobbyists or placement agents, restrict contingent compensation payable to such persons, and require detailed disclosure of these arrangements, as well as restrict or prohibit gifts, entertainment and/or political contributions. Many new requirements have been implemented in the past year, and the rules continue to evolve. The end result is that it may be very difficult for a manager and its internal and external marketers to keep track of the various requirements that apply to the solicitation of public retirement system business.
To help navigate this complexity on behalf of our clients, as of the date of this alert, we have researched requirements relating to the following state and local plans, and in certain cases, entities that administer state and/or local plans, with respect to: pay-to-play; campaign contributions; lobbying; use of placement agents; and gifts and entertainment, including any pre-contractual disclosure requirements, ongoing contractual disclosure requirements and penalties for violating these requirements.
Plan or Entity
New York State
New York City
For more information, please contact one the lawyers listed below or your K&L Gates relationship partner.
This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Any views expressed herein are those of the author(s) and not necessarily those of the law firm’s clients.