Regents Policy 6110: Policy on Disclosures Regarding Use of Placement Agents for University of California Retirement System Investments

Approved July 14, 2011
Amended March 29, 2012

Each External Manager proposing an investment to be made by or on behalf of the University of California Retirement System must comply with one of the following two requirements:

  1. If the External Manager will not use any Placement Agents in connection with the proposed investment, the External Manager must provide the Chief Investment Officer with a written statement to that effect.
  2. If the External Manager will use a Placement Agent in connection with the proposed investment, the External Manager must disclose the following information in writing to the Chief Investment Officer:
    • A description of the relationship between the External Manager and any Placement Agents for the investment for which funds are being raised.
    • Whether the Placement Agent’s mandate includes the Regents of University of California as trustee/custodian.
    • A description of the services performed by the Placement Agent.
    • A description of any and all payments of any kind provided or agreed to be provided to a Placement Agent by the External Manager with regard to investments by the Regents as a plan trustee or custodian of retirement or savings plan assets.
    • Upon request, the resume for each officer, partner or principal of the Placement Agent detailing the person’s education, professional designations, regulatory licenses, and investment and work experience.
    • A statement as to whether the Placement Agent, or any of its affiliates, is registered with the Securities Exchange Commission. 
    • A statement as to whether the Placement Agent, or any of its affiliates, is registered as a lobbyist under California law.

The Chief Investment Officer will only enter into agreements to invest in or through External Managers that agree to comply with the Regents’ Policy on Disclosures Regarding the Use of Placement Agents for University of California Retirement System Investments. The Chief Investment Officer will rely on the written statements made by the External Manager.

For purposes of this Policy:

“External Manager” means a (i) person who is seeking to be, or is, retained by the Regents to manage a portfolio of securities or other assets for compensation or (ii) a person managing an investment fund who offers or sells, or has offered or sold, an ownership interest in the investment fund.

“Placement Agent” means a person directly or indirectly hired, engaged or retained by, or serving for the benefit of or on behalf of, an External Manager or an investment fund managed by an External Manager, who acts, or has acted, for compensation as a finder, solicitor, marketer, consultant, broker or other intermediary in connection with the offer or sale to the Regents of either the investment management services of the External Manager or an ownership interest in an investment fund managed by the External Manager. Any exceptions to this definition of “Placement Agent” available under Sections 7513.8 or Section 82047.3 of the California Government Code will apply under this Policy.

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