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April 22, 2009

 

DiNapoli Bans Placement Agents

Renews Call for Public Campaign Financing;
Review of Hevesi Investments Underway

State Comptroller Thomas P. DiNapoli today announced he has banned the involvement of placement agents, paid intermediaries and registered lobbyists in investments with the New York State Common Retirement Fund (CRF). The ban includes entities “compensated on a flat fee, a contingent fee or any other basis.”

DiNapoli also announced Day Pitney LLP, a law firm specializing in pension fund issues, and Pension Consulting Alliance, an independent full service investment consulting firm, are assisting his office in its review of CRF investments with firms under investigation by the Attorney General and the Securities and Exchange Commission.

“The Hevesi administration violated the public trust,” DiNapoli said. “Since I took office, we’ve worked to implement reforms that will help restore integrity and trust in this office. Banning placement agents and lobbyists from involvement in investments is the next step, and it’s a big step.

“And, once again, I ask the legislature and every statewide official to support my program bill for public campaign financing for the State Comptroller race in 2010. We can take pay-to-play out of the equation by drastically limiting what donors can contribute. I’ve already put self-imposed limits on contributions to my campaign. But public campaign financing is the best answer.”

DiNapoli said he was drafting legislation to codify the pension fund reforms he has made since taking office in 2007, eliminating the potential for abuse in the future. In addition, DiNapoli asked Insurance Superintendent Dinallo to codify the ban into CRF regulations.

Starting immediately after he took office, DiNapoli began instituting a series of reforms to address the transgressions of the previous administration. He has increased transparency, enhanced ethics reporting and worked with the Insurance Department to strengthen the Department’s oversight of the pension fund.

Click here for the Placement Agent Disclosure Policies And Procedures.


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