Comptroller Scott M. Stringer Unveils Comprehensive Ethics And Reform Plan For Comptroller’s Bureau Of Asset Management

NEW YORK, NY- New York City Comptroller Scott M. Stringer, in a speech delivered to the Citizens Budget Commission on Thursday morning, announced sweeping reforms to the way in which the Comptroller’s Bureau of Asset Management (BAM) oversees the assets of the five city pension funds.

“Today I am enacting reforms that will significantly enhance accountability, transparency and ethics in my office,” Stringer said. “My plan codifies critical aspects of risk, compliance and governance that will set a high standard for how we do business beginning today. I look forward to working with the professionals in the Bureau of Asset Management as well as my fellow trustees as we continue to protect the retirement security of 700,000 New Yorkers and safeguard taxpayer dollars.”

Stringer’s six-point plan is designed to address potential conflicts of interest, strengthen internal controls and governance and increase the transparency and efficiency of BAM’s operations. Specifically, Stringer will:

1. Offer a resolution to fellow trustees on all five pension boards to ban placement agents across all asset classes.
2. Dramatically reform policies and procedures governing BAM by appointing senior risk and compliance officers to strengthen, monitor and continually improve operations. These officers will report directly to Comptroller Stringer.
3. Enact an investment disclosure policy that requires employees with investment decision-making authority to regularly report their personal trading to the senior compliance manager. These employees will continue the current practice of reporting their holdings on an annual basis to New York City’s Conflicts of Interest Board.
4. Implement cutting-edge training on ethics, conflicts of interest and financial regulation with a focus on manager compliance with foreign asset control regulations, anti-money laundering protocols and awareness of the Foreign Corrupt Practices Act.
5. Appoint an internal auditor and an internal audit committee to ensure that these reforms operate effectively. The auditor as well as the committee will report directly to Comptroller Stringer.
6. Develop an enhanced internal process for reviewing disability payments.

Comptroller Stringer has designated his general counsel, Kathryn (Kay) Diaz, to implement the reforms with the assistance of the deputy comptrollers. Diaz formerly served as special counsel to New York State Department of Financial Services Superintendent Benjamin Lawsky and as senior trial counsel at the state Attorney General’s office.

To read the full text of Comptroller Stringer’s address, click here.

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