Commissioner To Ask For Comments On Rule 260.204.9

Look for the Commissioner of Corporations to be issuing a solicitation for comments on proposed changes to Rule 260.204.9.  As will be discussed in a Guest Blog to be posted on Monday, the Commissioner has announced that he is considering changes to Rule 260.204.9 in light of the enactment of the Dodd-Frank Act last summer.  Currently,

“Shut, Shut The Door, Good John!” Bill Introduced To Close Revolving Pension Fund Door

Last week in this post, I wrote about the California Controller John Chiang’s announced intention to sponsor legislation to shut the revolving door between California’s two largest public retirement systems, CalPERS and CalSTRS, and the private sector.  Last week, Assemblyman Warren Furutani introduced AB 873.   Below is the Legislative Counsel’s description of the bill: This bill would prohibit

Video: Dodd-Frank Act To Increase State Oversight Of Hedge Fund Advisers

Watch the video

Watch the video In enacting the Dodd-Frank Act, Congress significantly altered the regulatory landscape for hedge fund advisers by eliminating (effective July 21, 2011) the fewer-than-fifteen client exemption from registration pursuant to Section 203(b)(3) of the Investment Advisers Act of 1940.  At the same time, Congress increased the assets under management threshold for registration as an investment adviser

Controller To Sponsor Bills Aimed At Influence Peddling At CalPERS And CalSTRS

On February 3, 2011, California Controller John Chiang sent this letter to Rob Feckner, Chairman of the California Public Employees Retirement System.  The Controller is an ex officio member of the CalPERS Board of Administration. The first bill would reduce the annual gift allowance under California’s Political Reform Act from $450 to $50.   According to

CalPERS’ Placement Agent Investigators Admit Cooperation With The SEC and Prosecutors

On Wednesday, February 16, 2011, the Board of Administration of the California Public Employees Retirement System will consider proposed steps to implement the twelve recommendations resulting from a special review by an outside law firm of placement agent activities.  These recommendations were presented to the Board of Administration at its December, 2010 meeting. According to

OAL Approves CalPERS’ Placement Agent Disclosure Regulation / Bill Introduced To Require Ethnic And Gender Reporting By CalSTRS & CalPERS

More than a year ago, I petitioned the California Public Employees Retirement System to adopt placement agent disclosure regulations in accordance with the California Administrative Procedure Act.  Last Friday, the California Office of Administrative Law approved CalPERS’ proposed regulation.  The new regulation is codified at 2 CCR § 559.    The regulation will take effect on filing with the California Secretary of State in accordance

“Most” Does Not Mean All

Because the Dodd-Frank Act requires the adoption of so many new regulations, I like to say that the other shoe (or more likely a whole closet full of shoes) remains to be dropped.   One large shoe that is yet to be dropped is how the Securities and Exchange Commission will define “venture capital fund” for purposes of

California Commissioner Expresses Concern About Proposed Venture Capital Fund Definition

As I wrote in this early posting, California is ground zero for the venture capital industry.  Many of our most succesful and innovative companies have been funded by the venture capital industry.  Thus, it is good to see that Commissioner Preston DuFauchard has submitted this letter of comment with respect to the Securities and Exchange Commission’s

Commissioner Extends Comment Period On Investment Adviser Rule Changes

As posted last month, the Commissioner of Corporations has issued an invitation for comment on possible changes to California’s investment adviser rules.  The deadline for submitting comments was set to expire this week.  Just before year end, however, the Commissioner extended the comment period to January 21, 2011.  The Commissioner is seeking comments in accordance with Government Code § 11346.45 before formally

Where Are CalPERS’ Placement Agent Disclosure Regulations?

In September 2009, I submitted a petition to the California Office of Administrative Law (OAL) for a determination that CalPERS’ placement agent disclosure guidelines constituted illegal, underground regulations.  Although the OAL accepted my petition, CalPERS short circuited a determination by certifying that it would not enforce its guidelines.  My position was not that CalPERS should