Issues Update
Placement Agent Bill to Prevent Corruption in Public Pension Systems Passes Assembly
June 2, 2010
A bill that would require rigorous regulation of placement agents has advanced in the California Assembly. AB 1743, authored by Assemblymember Dr. Ed Hernandez, O.D. (D-West Covina), and co-sponsored by CalPERS, the State Treasurer and Controller, would treat placement agents as lobbyists and prohibit them from collecting contingency fees based on the outcome of any investment decisions. The bill received the critical two-thirds majority necessary for moving it forward. "Today we moved one step closer to providing much needed protection for CalPERS and our members and employers," said Rob Feckner, President of the CalPERS Board of Administration. "The allegations in the recent Attorney General lawsuit are clear signs why we need this reform to ensure full transparency and accountability when it comes to our investment decisions."
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