New York Comptroller Bans Solicitors
New York State’s Comptroller, Thomas DiNapoli, banned placement agents, paid intermediaries, and lobbyists from receiving payments from investment managers for the opportunity to manage assets for the New York State Common Fund. The ban, instituted through press release, includes any form of compensation. The ban responds to a recent pay-to-play scandal involving New York’s public fund management.
OUR TAKE: We expect other states and other large benefit plans to institute similar bans on solicitors. We also expect the SEC to address regulation of solicitors both under the Advisers Act and the Exchange Act.