| Advisory opinion request regarding whether George Meyer, the former Chief Investment Officer for the Louisiana School Employees' Retirement System, may accept employment with FFC Capital. |
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George Meyer was the Chief Investment Officer (CIO) for the LSERS until December 2, 2013. His job duties and responsibilities as CIO included:
- Assessing monthly cash flow requirements and initiating account and wire transfers to ensure funds availability.
- Preparing various regulatory reports for the Louisiana Legislature and other state agencies.
- Managing the budget process to prevent cost over-runs.
- Reviewing the portfolio and making recommendations regarding risk reduction with minimal impact to returns.
- Providing professional guidance to the Board of Trustees regarding the selection of new investment managers.
- Preparing investment performance reports for review by the Board of Trustees.
- Serving as liaison with investment brokers, managers and custodian banks to solve trade problems.
- Reviewing LSERS' portfolio, comprised of $1.6 billion in investments, to ensure compliance with the Investment Policy.
- Supervising the staff of the Investment Department.
While Mr. Meyer was CIO of LSERS, FFC Capital had a business relationship with one of the investment managers executing trades on behalf of LSERS.
LSERS' process for choosing an investment manager begins with an outside investment consulting firm determining what percentage of the fund will be invested in stocks, bonds, real estate, private equity, etc. Then, the Board of Trustees seeks Requests for Proposals (RFP's) from investment managers that specialize in those areas identified by the consulting firm. The investment managers are ranked based on their investment process, performance, assets under management, tenure of the portfolio manager, and any other relevant criteria. Typically, after interviewing the top five ranked investment managers, the field is narrowed down to three. Finally, the Board of Trustees chooses one of the three investment managers to invest that part of the funds. As CIO, Mr. Meyer's role in this process would have been to rank the investment managers based on the criteria set by the Board.
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The Louisiana School Employees' Retirement System (LSERS) was created by La. R.S. 11:1001, et seq. as an agency of the State of Louisiana.
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La. R.S. 42:1121A(1) provides that no former agency head shall, for a period of two years following the termination of his public service as the head of such agency, assist another person, for compensation, in a transaction, or in an appearance in connection with a transaction, involving that agency or render any service on a contractual basis to or for such agency.
La. R.S. 42:1121C provides that no legal entity in which a former public servant is an officer, director, trustee, partner, or employee shall, for a period of two years following the termination of his public service, assist another person, for compensation, in a transaction, or in an appearance in connection with a transaction in which such public servant at any time participated during his public service and involving his former agency.
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Adopt the proposed advisory opinion.
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| Assigned Attorney: |
Haley Williams |
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