All five New York City Pension Funds have passed a resolution to ban placement agents across all investment classes, New York City Comptroller Scott M. Stringer announced on Wednesday. Previously City Pension Funds only prohibited such placement agents for private equity investments.
“The passage of an ironclad ban on placement agents for all transactions involving the New York City Pension Funds was long overdue,” Comptroller Stringer said. “Ending the involvement of intermediaries in pension funds’ transactions will ensure that the integrity and independence of our investment decisions are beyond reproach and without conflict. I want to thank my fellow trustees for their support of this measure and I look forward to working with them as we continually improve the way the New York City Pension Funds do business.”
Placement agents act as intermediaries to connect asset managers and investors. The ban on placement agents is effective immediately for all prospective investments made by any of the five pension funds.
The newly-enacted ban is part of a six-point reform package for the operations of the Comptroller’s Office Bureau of Asset Management and the pension funds introduced by Comptroller Stringer in January. Comptroller Stringer serves as the investment advisor to, custodian and trustee of the $150 billion New York City Pension Funds.
The New York City Pension Funds are composed of the New York City Employees’ Retirement System, Teachers’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and the Board of Education Retirement System. – See more at: http://comptroller.nyc.gov/newsroom/new-york-city-pension-funds-enact-placement-agent-ban/#sthash.46v44Mek.dpuf
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