New York State Comptroller Thomas P. DiNapoli today issued the following statement after Gov. Cuomo signed DiNapoli's legislation to prohibit the use of placement agents or intermediaries by the New York State Common Retirement Fund (Fund). This bill (A.3137/S.4761) codifies into law reforms pushed by DiNapoli since 2011.

"When I became State Comptroller, I undertook a comprehensive review of the state pension fund's operations to restore its reputation after the previous administration's wrongdoing. It was clear to me that placement agents were corrosive and unnecessary," DiNapoli said. "In April 2009, I banned placement agents, paid intermediaries and registered lobbyists from involvement with investment decisions. New York was one of the first states in the nation to completely ban them. I want to thank Governor Cuomo for his support and leadership and for permanently taking placement agents out of the equation."

The DiNapoli legislation:

• prohibits the Fund from engaging, hiring, investing with or committing to an investment manager that is using the services of a placement agent or intermediary to assist such investment manager in obtaining investments by the Fund; and
• prohibits the Fund from engaging, hiring, investing with or committing to an investment manager without obtaining from such investment manager a certification in the form and manner prescribed by the Fund stating that such investment manager has not used the services of a placement agent or other intermediary to assist such investment manager in obtaining investments by the Fund.

To read DiNapoli's legislation, go to: https://www.osc.state.ny.us/legislation/placement-agent-ban