N.Y. Retirement & Social Security Law § 424-a: Use of placement agents or intermediaries prohibited

§ 424-a. Use of placement agents or intermediaries prohibited. 1. The

fund shall not engage, hire, invest with or commit to an investment

manager that is using the services of a placement agent or intermediary

to assist such investment manager in obtaining investments by the fund

nor shall the fund engage, hire, invest with or commit to an investment

manager without obtaining from such investment manager a certification

in the form and manner prescribed by the fund stating that such

investment manager has not used the services of a placement agent or

other intermediary to assist such investment manager in obtaining

investments by the fund.

2. For the purposes of this section:

(a) "investment manager" shall mean any person, other than an employee

of the comptroller, or entity engaged by the common retirement fund to

manage a part or all of an investment portfolio of the fund. "Manage"

shall include, but is not limited to, the analysis of portfolio

holdings, and the purchase, sale, and lending thereof. Any investment

made by the fund pursuant to subdivision seven of section one hundred

seventy-seven of this chapter shall be deemed to be the investment of

the fund in such investment entity rather than in the assets of such

investment entity.

(b) "placement agent or intermediary" shall mean any person or entity,

including registered lobbyists, directly or indirectly engaged and

compensated by an investment manager, other than an employee of the

investment manager, to assist the investment manager in obtaining

investments by the fund whether compensated on a flat fee, a contingent

fee, or any other basis. Employees of an investment manager and its

affiliates are excluded from this definition unless they are employed

principally for the purpose of securing or influencing the decision to

secure a particular investment transaction or investment by the fund.