Checking up on pension advisors
Alarmed by Detroit, New York state financial regulators subpoenaed about 20 companies that help New York’s pension trustees decide how to invest the billions of dollars under their control. They want to find out whether any outside advice is clouded by undisclosed financial incentives or other conflicts of interest. (It might be a good idea to ask for a similar investigation in your city or state.)
New York state pension trustees have been advised that regulators will take a look at “controls to prevent conflicts of interest, as well as the use of consultants, advisory councils and other similar structures.” Together, the city and state trustees serve as stewards for $350 billion of retirement money. Read more here.