New Mexico, like New York and California is regulating the use of placement agents. The state has adopted the New York Model and banned any future investments with money managers who employ third-party placement agents. They have also instituted enhanced disclosure requirements.
The New Mexico State Investment Council policy will preclude any investments being made with money managers who use outside placement agents to market their fund. This is a complete ban of third-party marketers. Money managers who use internal marketing teams will have to disclose details of their relationships. Fees paid to attorneys, consultants, brokers, administrators and others related to investments will also require disclosure under the new rules.
The policy was enacted at the end of May, 2009. (I just realized that I forgot to write a post about it.)
- New Mexico State Investment Council Transparency & Disclosure Policy
- Press Release Announcing the Placement Agent Ban
- California Regulates Use of Placement Agents – prior post
- New SEC Rule on Political Contributions by Certain Investment Advisers – prior post
- New York Comptroller Bans Placement Agents for State Pension Fund– prior post