Tag: New York

New York Public Pension Funds’ Regulation No. 85

The Superintendent of Insurance of the State of New York promulgated  the Second amendment to Part 136 of Chapter IX of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulation No. 85) (.pdf) in October 0f 2008. The regulation is intended to have the business of the state retirement systems comply with these principles:

  1. the retirement system and the fund shall operate under a strong governance framework with a rigorous system of internal controls;
  2. the retirement system and the fund shall maintain a high level of operational transparency;
  3. the Comptroller shall adhere to and manage the retirement system and the fund with the highest ethical, professional and conflict of interest standards;
  4. the Comptroller shall have a fiduciary responsibility to act for the sole benefit of the retirement system’s members and beneficiaries; and
  5. the retirement system and the fund shall be managed in the most efficient and effective manner possible.

The regulation requires investment managers to promptly disclose any conflict of interest that “reasonably be expected to impair the investment manager’s, or consultant or advisor’s ability to render unbiased and objective advice”. [11 NYCRR 136-2.4(c)(1)(i)].

The regulation also requires investment advisers to file an annual statement with the following language:

“ALL INVESTMENT MANAGERS, AND CONSULTANTS OR ADVISORS OWE THE COMPTROLLER A FIDUCIARY DUTY. THIS MEANS THAT INVESTMENT MANAGERS, OR CONSULTANTS OR ADVISORS MUST DISCLOSE TO THE COMPTROLLER INFORMATION ABOUT MATERIAL CONFLICTS OF INTEREST. FAILURE TO TRUTHFULLY COMPLETE THIS STATEMENT MAY RESULT IN CRIMINAL OR CIVIL LIABILITIES”. [11 NYCRR 136-2.4(c)(1)(ii)]

The regulation also requires an investment manager to disclose the payments made to any placement agent or intermediary that assists the investment manager in obtaining investments by the Fund.[11 NYCRR 136-2.4(d)]

The New York State Comptroller, Thomas P. DiNapoli, also releases monthly reports that disclose in detail investments and transactions, hiring of fund managers, and the involvement of placement agents: Disclosure of Investments & Transactions.

Six States Now Require Social Security Number Protection Policies

Miriam Wugmeister, Nathan D. Taylor of Morrison & Foerester wrote the December Privacy and Data Security Update: Six States Now Require Social Security Number Protection Policies.

  • Connecticut – Ct. H.B. 5658.
  • Massachusetts – 201 Mass. Code Regs. §§ 17.01 – 17.04.
  • Michigan – Mich. Comp. Laws § 445.84.
  • New Mexico – N.M. Stat. §§ 57-12B-2 – 57-12B-3.
  • New York – N.Y. Gen. Bus. Law § 3990dd(4).
  • Texas – Tex. Bus. & Com. Code § 35.581 (effective through March 31, 2009); Tex. Bus. & Com. Code § 501.051 – 501.053 (effective April 1, 2009).

These state SSN protection policy requirements highlight the importance of maintaining up-to-date privacy policies that comply with the evolving requirements under applicable state laws.  To get started, an organization should consider taking the following steps:

  • determine if you collect or maintain SSNs;
  • review your policies and procedures that are employee-facing to determine if you have sufficient policies to meet the obligations under the various state laws;
  • update your policies and procedures as needed;
  • train employees on the new policies and procedures; and
  • audit your employees to ensure that they are complying with your policies and procedures.