Investments

Issues Update

CalPERS Writes to Congress Regarding Financial Bills
June 28, 2011

CalPERS has written to the leaders of the House Financial Services Committee to express concern about three bills that “would undermine several important financial regulatory reforms.” The letter from CalPERS Senior Portfolio Manager for Global Equity Anne Simpson addressed the following pieces of legislation:

• The Small Business Capital Access and Job Preservation Act” (H.R. 1082) would exempt advisers to private equity funds from registration and reporting requirements included in the 2010 financial regulations reform law. Simpson wrote that such an exemption would cause investors to be “deprived of the timely and accurate information they need to ascertain the suitability of an investment fund given their financial objectives and risk tolerance.”


• The Burdensome Data Collection Relief Act” (H.R. 1062) would eliminate a requirement in the 2010 law that public companies disclose the ratio of median employee compensation to the compensation of the chief executive officer. Simpson noted that CalPERS opposes the bill because such disclosures “would provide shareowners a valuable metric.”


• The Asset-Backed Market Stabilization Act of 2011” (H.R. 1539) would eliminate the provision of the 2010 law that makes credit rating agencies civilly liable for their ratings. Simpson expressed CalPERS’ opposition to the attempted repeal of this measure.

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