Regents Policy 6104: Policy on Conflict of Interest Regarding Assets Managed by the Chief Investment Officer

Adopted September 22, 2005
Amended July 19, 2007, November 15, 2007, March 20, 2008, March 29, 2012, and May 11, 2021*
Revised March 15, 2018

POLICY SUMMARY/BACKGROUND
In order to maintain the highest fiduciary standards and to align with institutional investment best practices, the roles and responsibilities of various UC fiduciaries are explicitly separated to ensure the continuance of sound investment practices and the protection against real or perceived conflict of interest, especially with regard to the selection of individual investments or investment managers. By separating the duties of investment policy-making and investment implementation, The Regents’ created an institutional framework to uphold the California Political Reform Act of 1974, which provides that public officials shall not make, participate in making, or influence a governmental decision in which the official has a financial interest.

POLICY TEXT
Individual Regents, advisory members, and expert advisors of Regents Committees or Subcommittees are prohibited from contacting the Chief Investment Officer, including any officer of the OCIO of the Regents, to offer advice or recommendations with respect to the selection of specific investments, investment managers, or investment management firms in which the official has a financial interest.

COMPLIANCE/DELEGATION
The General Counsel is responsible for determining, pursuant to the following procedures, that the Chief Investment Officer’s responsibilities for selecting investment managers have been exercised free of any such prohibited efforts to influence the Chief Investment Officer.

The Chief Investment Officer will advise the General Counsel if any employee of that office is contacted by a Regent, advisory member, or expert advisor in connection with the choice of investments, investment managers, or investment management firms. The Office of the General Counsel will then determine whether the communication was prohibited pursuant to this policy. In the event such a prohibited effort to influence the Chief Investment Officer's selection of investments, investment managers, or investment management firms is identified, the General Counsel shall immediately bring the matter to the attention of the Chair of the Investments Committee.

NO RIGHT OF ACTION
This policy is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the University of California or its Board of Regents, individual Regents, officers, employees, or agents.

*Technical Amendment made by the Secretary and Chief of Staff to the Regents per Policy 1000