Prohibits the use of investment managers to assist with investments of monies in the common retirement fund; requires that all current contracts with investment managers not be renewed after a period of one year.
Summary
Bill A04866 seeks to amend the retirement and social security law in New York by prohibiting the common retirement fund from engaging investment managers who utilize placement agents or intermediaries to assist in obtaining investments. The bill mandates that any existing contracts with such investment managers cannot be renewed after a one-year period from the bill's effective date. This change aims to enhance transparency and accountability in the management of the retirement fund's investments.
Impact
If enacted, this bill will significantly alter the investment landscape for the New York common retirement fund by eliminating the use of intermediaries in investment management. This could lead to a more direct investment strategy, potentially reducing costs associated with intermediary fees. Additionally, the bill may impact existing contracts and relationships between the retirement fund and investment managers, requiring a reevaluation of investment strategies and compliance with the new regulations.
Sentiment
The general sentiment surrounding Bill A04866 appears to be cautious, with discussions focusing on the implications of restricting investment managers. Supporters argue that the bill promotes transparency and reduces potential conflicts of interest, while opponents express concerns about limiting investment options and the potential impact on fund performance. The lack of voting history suggests that the bill is still in early stages of consideration.
Contention
Notable points of contention include the potential negative effects on investment performance due to the exclusion of experienced investment managers who utilize intermediaries. Proponents of the bill argue that it will prevent corruption and ensure that investments are made solely based on merit, while critics worry that it may hinder the fund's ability to access diverse investment opportunities. The debate centers on balancing transparency with effective fund management.
Prohibits the use of investment managers in the New York state and local police and fire retirement system; defines who qualifies as an investment manager.
Allows any enrollee of the New York State common retirement fund to request a list of investment managers on contract with the office of state comptroller to make investment contracts for the office of state comptroller division of pensions, investment, and cash management and the contents of any contracts and opportunistic investment contracts made by such investment manager.
Allows any enrollee of the New York State common retirement fund to request a list of investment managers on contract with the office of state comptroller to make investment contracts for the office of state comptroller division of pensions, investment, and cash management and the contents of any contracts and opportunistic investment contracts made by such investment manager.