NY Comptroller DiNapoli Announces New Pay-to-Play Rule
New York State Comptroller Thomas DiNapoli today signed an executive order banning the $116.5 billion NY Common Retirement Fund from doing business with anyone who has made contributions to the state comptroller within the past two years. It also would affect firms making contributions to candidates for state comptroller. The executive order is effective in 45 days from today. It also is prospective rather than retrospective, which basically means that past contributions and/or investment decisions will not be affected. Disclosure of contributions would be required to be made by the firms themselves, rather than via a search of campaign finance records. DiNapoli says the rule mirrors proposed regulations by the SEC, which also would ban the use of placement agents. The Comptroller already banned placement agent usage by NYCRF earlier this year. The rule does not apply to law firms or other retained service providers to investment firms. It also does not
