Full Disclosure for Funds

The Oklahoma Pension Oversight Commission and the Tobacco Settlement Board of Investors have adopted policies supporting full disclosure by potential public fund investment managers of fees paid to third-party marketing agents.

State Treasurer Scott Meacham, who chairs the two boards, said the policy would ensure proper oversight of public funds and keep investment managers from making improper payments to public officials to secure lucrative state contracts.

Meacham said the policies protect the state against pay-for-play scandals resulting from attempts by third-party marketing agents to influence the placement of public funds for investment.

“We have a duty to protect and carefully manage the taxpayers’ money, and that includes making sure some public official’s pocket isn’t being lined by some investment firm seeking favors,” Meacham said.

“The spotlight of public scrutiny will help keep the process honest by requiring disclosure of the existence of third-party marketing agents and any fees paid to these agents that could potentially be used as a conduit for bribes,” he said.

The tobacco board’s action will require the disclosure by all bidders for investment of Oklahoma’s share of the national tobacco settlement. More than $400 million is currently under investment.

The pension commission urged all Oklahoma public pension boards to adopt policies requiring full disclosure. The pension systems manage investments of more than $14.6 billion.

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