Two More Investment Firms In Public Pension Industry Agree To Cuomo’s ‘Pay To Play’ Ban

The U.S. Supreme Court’s decision last month striking down federal campaign finance reform legislation led to much hand wringing, and probably just as much hand clapping. What may have gotten lost in the hullabaloo is that we live in a federal system. An announcement today by N.Y. Attorney General Andrew Cuomo shows that the government – or at least some government – still has power to limit campaign contributions. 

Cuomo announced today that two leading investment firms have agreed to adopt his Public Pension Fund Reform Code of Conduct, which eliminates campaign contributions (“Pay to Play”) from the public pension fund system. In particular, the Code bars investment firms from doing business with a public pension fund for two years after the firm makes a campaign contribution to an elected or appointed official who can influence the fund's investment decisions. Investment firms must also disclose any conflicts of interest to public pension fund officials or law enforcement authorities, to increase transparency and avoid abuse of the fund for personal gain.
Ares Management LLC and Freeman Spogli & Co. are the tenth and eleventh firms that have adopted the Code, according to Cuomo.