Educational Retirement Board also firing Aldus Equity
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In addition, governor orders the ERB to ban the use of third-party marketers for six months, consider making ban permanent A day after Gov. Bill Richardson announced that the State Investment Council (SIC) would terminate its contract with a company tied to scandal in New York and New Mexico, the Educational Retirement Board (ERB) is following suit and also firing Aldus Equity. The move, ordered by Richardson, was announced today in a news release from the governor’s office along with the ERB’s six-month ban on the use of third-party marketers by investment agencies seeking to do business with the agency. The ERB will evaluate the long-term implications of making the ban permanent, the news release states. “I feel strongly that a ban on these agents is necessary to restore confidence in our investment practices,” Richardson said in the release. “The practice of fund managers paying huge fees to third-party agents may be legal and legitimate, but the potential for a conflict of interest is troubling. Continue Reading