Politics & Regulation

Massachusetts pensions keeping watch on placement agents

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Regulatory body Massachusetts PERAC has issued a ban on any manager or placement agent from soliciting new investments from any pension fund board for a set period if the agent is working without being registered with the US Securities Exchange Commission or other regulatory bodies.

Managers are required to submit information to the retirement board regarding relationships with placement agents, which is often the rule at the majority of US public pension funds following a kickback scandal in New York state with the use of private placement agents by hedge funds and private equity firms.

The rule, announced