N.Y. Retirement & Social Security Law § 423-c: MWBE asset management and financial institution strategy

§ 423-c. MWBE asset management and financial institution strategy. 1.

Within the discretion of the state comptroller and in accordance with

and subject to his or her fiduciary duties and obligations as trustee of

the common retirement fund and to the members, retirees and

beneficiaries of such fund and such other investment limitations as may

be prescribed by this chapter, the comptroller is authorized to

establish an MWBE asset management and financial institution strategy

including reasonable goals for utilization of MWBE asset managers, MWBE

financial institutions and MWBE financial and professional service

firms, which strategy shall include, but shall not be limited to, the

following objectives:

(a) investing assets of the common retirement fund with MWBE asset

managers;

(b) subject to best execution: (i) conducting trades of public equity

securities with MWBE financial institutions; and (ii) conducting trades

of fixed-income securities through MWBE financial institutions;

(c) allocating investments of assets of the common retirement fund

either through: (i) direct investments in the equities and debt

securities of MWBEs; or (ii) indirectly through special programs

involving MWBE asset managers; and

(d) awarding contracts for accounting, banking, financial advisory,

insurance, legal, research, valuation and other financial and

professional services to MWBE financial institutions and other MWBE

professional service firms.

2. The comptroller is also authorized to: (a) periodically advertise

the existence of the strategy established in this section so that MWBE

asset managers, MWBE financial institutions and other MWBE professional

service firms are made aware of the opportunities made available

pursuant to such strategy;

(b) within sixty days of the end of each fiscal year following the

effective date of this section, the state comptroller shall report to

the governor, legislature and the chief diversity officer of the state

of New York on the participation of MWBE asset managers, MWBE financial

institutions and MWBE professional service providers in investment and

brokerage transactions with or as providers of services for the common

retirement fund, including a comparative analysis of such activity

relative to such activity with all asset managers, financial

institutions and professional service providers for the relevant period

and on the progress and success of the efforts undertaken during such

period to achieve the goals of such strategy. Each report shall be

simultaneously published on the website of the common retirement fund

for not less than sixty days following its release to the governor and

the other recipients named above;

(c) work with the other fiduciary-controlled entities to create a

database of such MWBE entities; and

(d) periodically, but not less than annually, hold a conference to

promote such strategy in conjunction with the other fiduciary-controlled

entities.

3. (a) The state comptroller shall establish and adopt a certification

process and guidelines for the sole purpose of identification and

reporting on MWBE firms providing asset management, brokerage, or other

financial or professional services as such term is defined in

subdivision six of section one hundred seventy-six of this chapter. Such

certification shall differentiate and the comptroller shall maintain

separate categories for MWBE asset managers meeting the criteria of

subparagraph (i) of paragraph (a) of subdivision six of section one

hundred seventy-six of this chapter and MWBE asset managers meeting the

criteria of subparagraph (ii) of paragraph (a) of such subdivision.

(b) Such certification process shall include, but need not be limited

to, a request for the following information relating to each managing

principal, principal, operating principal, chief financial officer,

operating vice-president, vice-president, partner, owner and employee

associated with a prospective MWBE entity:

(i) title;

(ii) position;

(iii) ownership percentage;

(iv) ethnicity;

(v) gender; and

(vi) length of service.