- One-Third Rule– personnel of external managers who spend one-third or more of his or her time managing securities; and
- Competitive Bidding Process Rule– personnel of an external manager whereby the external manager is: (1) registered as an investment adviser or broker dealer with the SEC; (2) has been elected through a competitive bidding process; and (3) whose contract specifies the manager’s fiduciary standard of care.
It is important to specify that AB 1743 only applies to lobbying state retirement funds, such as the California State Teachers’ Retirement System (CalSTRS) and the California Public Employees’ Retirement System (CalPERS). However, local lobbying ordinances may still govern the solicitation of local pension funds. Accordingly, if you are marketing your services to local retirement funds you should be mindful of any applicable registration, reporting or other requirements.For additional information placement agents and lobbyist registration, please contact the JLG team at (619) 298-2880.