{"id":4601,"date":"2009-05-26T21:03:00","date_gmt":"2009-05-27T03:03:00","guid":{"rendered":"http:\/\/www.nmpolitics.net\/index\/2009\/05\/state-investment-council-bans-third-party-marketers\/"},"modified":"2009-05-26T21:03:00","modified_gmt":"2009-05-27T03:03:00","slug":"state-investment-council-bans-third-party-marketers","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2009\/05\/state-investment-council-bans-third-party-marketers\/","title":{"rendered":"State Investment Council bans third party marketers"},"content":{"rendered":"

\"\"<\/a><\/p>\n

\u201cThe strongest in the nation and appropriately so\u201d is how Gov. Bill Richardson<\/a> described today\u2019s ban by the State Investment Council<\/a> (SIC) of future investments with companies that employ third-party marketers to help them win government contracts.<\/p>\n

The SIC also voted unanimously today to require what a news release from Richardson\u2019s office called \u201csweeping disclosure\u201d of all payments made in relation to permanent fund investments, and to ban certain campaign contributions.<\/p>\n

\u201cWith this ban, and the more stringent transparency and disclosure policies in place, I want the public to be confident that we are acting as responsible managers of the state\u2019s permanent funds,\u201d Richardson said.<\/p>\n

From the news release:<\/p>\n

\n

\n

\u201cThe State Investment Council policy will preclude any investments being made with money managers who use outside placement agents to market their fund or services. This is a complete ban of third-party marketers, not just \u2018targeted\u2019 placement agents, whose practices have come under increasing scrutiny both in New Mexico and nationally in recent weeks. <\/p>\n

\u201cMoney managers who use internal marketing teams will have to disclose details of their relationships to be considered for SIC investments. Details of these and all other third-party fees connected with an SIC investment will be made public for review prior to investment finalization. Fees paid to attorneys, consultants, brokers, administrators and others related to SIC investments will also require disclosure under the new SIC rules.<\/p>\n

\u201cThe wide ranging policy also prohibits any SIC investment managers or contract holders from making campaign contributions to any elected or appointed officials who may have influence over the State Investment Office or its advisory and oversight boards. The prohibition spans the full term of the investment as well as the two years prior.<\/p>\n

\u201cPenalties outlined in the new policy will allow the SIC to recoup damages and repayment of management fees from any investment partner who fails to fully disclose a financial benefit to individuals related to a state investment. These penalties help bolster the law signed by Governor Richardson last month, making failure to disclose third party marketers a felony in New Mexico.\u201d<\/p>\n<\/blockquote>\n

\n

As reported by The Santa Fe New Mexican\u2019s Steve Terrell<\/a>, it\u2019s not clear whether the ban on campaign contributions applies to contributions to political actions committees, political parties and legislators who sit on committees that oversee investments.<\/p>\n

Regardless, this is strong action, and comes on the heels of several other steps taken in recent weeks in New Mexico as the investment scandal has exploded here, in New York and elsewhere.<\/p>\n

<\/span>Attorney General Gary King has joined a national task force<\/a> that is investigating the spreading scandal. In New Mexico, the scandal has also led to the firing of Aldus Equity<\/a>, which advised the SIC <\/a>and Educational Retirement Board<\/a>, and the disclosure for the first time of many of the third-party marketers investment firms employed in their dealings here.<\/p>\n

Aldus\u2019 founder is among those facing criminal charges in New York.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cThe strongest in the nation and appropriately so\u201d is how Gov. Bill Richardson described today\u2019s ban by the State Investment Council (SIC) of future investments with companies that employ third-party marketers to help them win government contracts. The SIC also voted unanimously today to require what a news release from Richardson\u2019s office called \u201csweeping disclosure\u201d […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4601","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/4601","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=4601"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/4601\/revisions"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=4601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=4601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=4601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}