February 28, 2011 •
CalPERS to Strengthen Ethics Policies
Directors of the California Public Employees’ Retirement System (CalPERS) adopted several new ethics proposals. Among the proposals are rules to regulate fee payments to placement agents, who help funds gain access to CalPERS decision makers, and rules to ensure the same staff members who negotiate investment deals do not monitor their success.
Additionally, the directors approved a requirement for investment partners to hold meetings in modest office settings instead of vacation resorts. The directors postponed decisions on proposals to reduce or eliminate travel, gifts, and other accommodations outside investment firms provide board members, and to impose a two-year “revolving door” ban on certain CalPERS employees.
These regulations being put in place are in line with legislation taking effect earlier this year requiring placement agents to register as lobbyists and regulating how the agents are paid.
Photo of CalPERS headquarters by Coolcaesar on Wikipedia.
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