Meetings
 
Agenda Item
Docket No. 12-892
 
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RE:
Advisory opinion request regarding the parent company of an investment firm borrowing money from a hedge fund that provides consulting services to the Firefighters Retirement System, a client of the investment firm.
Facts:
The Firefighters Retirement System engaged the services of an investment consulting firm, which is a limited liability company. On information and belief of the Retirement System, the investment firm is owned by a parent company, which is also a limited liability company. The parent company and the investment firm share owners and principal officers.

In 2006, the investment firm advised the Retirement System to engage the services of a hedge fund to provide investment advisory services. In 2009, the reference hedge fund made a loan to a member of the parent, LLC. The member borrowed approximately $50,000 at 3.10% interest, reportedly as an advance of a redemption related to the member's personal investment in the hedge fund. Repayment remains outstanding today.

Recommendations:
Decline to render based on past conduct.

Assigned Attorney: Tracy Barker
 
 
ATTACHMENTS:
Description:
2012-892- Advisory Opinion Request