PERAC Memo #15 - 2011: Draft Investment Regulations

Draft Investment Regulations

Summary

This memo announces PERAC's initiation of the process to revise its Investment Regulations, consolidating existing guidance (e.g., Hedge Fund Guidelines, Placement Agent Policy, Mandate Modification, and Futures/Options rules) into formal regulation, updating procurement requirements, and removing outdated provisions. The draft is not final—public hearings and a comment period will follow before any changes are adopted—so boards need not take immediate action but should monitor the process and may wish to submit comments or attend hearings.

Full Text

MEMORANDUM #15, 2011 R. Mennis M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Draft Investment Regulations DATE: March 4, 2011 The Public Employee Retirement Commission (PERAC) has commenced the process for the promulgation of revised Investment Regulations governing the recordkeeping, procurement, and investment activities of the retirement boards. Initial submissions have been made to Administration & Finance as well as other entities which must receive a copy of proposed regulations under the statute. However, it must be stressed that the draft regulations are by no means final and under the Commission’s process; public hearings will be scheduled and public comments received during the next several months. At the conclusion of that period the Commission will revisit the draft and make changes in light of the comments received prior to proceeding further. The Commission is attempting to incorporate into regulation guidelines adopted over the last 12 years such as Hedge Fund Guidelines, Placement Agent Policy, Mandate Modification and Use of Futures and Options. In addition, we are updating our regulatory approach in light of changes to the market place that have taken place over the last 12 years and delineated procurement requirements for solicitation of services by retirement boards. The proposal also eliminates outdated regulations. We look forward to testimony from interested parties in writing or directly at the upcoming hearings. If you have questions, please contact me, or Deputy Executive Director Joseph Martin.