Third Party Marketing & Placement Agent Restrictions

Third Party Marketing Restrictions

The following article was first published on ThirdPartyMarketing.com, now the #1 most widely visited website on fund marketing and sales. The third party marketing industry has been battered over the past 6 months with dozens of reports of un-ethical or illegal kickbacks being provided to third party marketing agents, placements agents and those in control of funds at large institutional investors. This is the first public black mark for the third party marketing industry in several years and many large investor groups are now reviewing the rules surrounding the use of placement agents. In the past full disclosure was adequate to 99% of investors, but now some are not looking at funds which use such agents. Here is a related about this trend:

Legislative leaders have agreed to spend up to $100,000 to help pay for an independent review of New Mexico's investment practices and policies.

Questions have been raised about investments of public money because of millions of dollars in fees paid to third-party marketing and placement agents by firms that won investment business with the State Investment Council and an educational retirement fund.

Lawmakers are also troubled by billions of dollars in losses in pension and investment funds during the past year as financial market deteriorated.

The Legislative Council, a group of House and Senate leaders, directed its staff on Wednesday to solicit bids from firms interested in doing a wide-ranging examination of the State Investment Council and agencies that administer public pension funds, the Educational Retirement Board and the Public Employees Retirement Association.

The agencies manage funds valued at $25 billion at the end of March.

Gov. Bill Richardson's administration is jointly commissioning the investment review with the Legislature, and the executive branch will provide up to $200,000. source

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Tags: third party marketing, hedge funds, hedge fund, alternative investments, placement agents, third party marketing rules and regulations, restrictions on placement agents