CalSTRS Adopts Investment Protection Principles.Business Editors The California State Teachers' Retirement System today expanded its financial market reform initiatives to include protections against conflicts of interest by its brokers and investment managers. CalSTRS will give significant consideration to compliance with the investment protection principles when selecting and retaining brokers and investment managers. CalSTRS will also conduct annual compliance reviews once the principles are adopted by the firms. The principles were derived from a settlement agreement between Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. and N.Y. Attorney General Eliot Spitzer Eliot Laurence Spitzer (born June 10 1959 ) is an American lawyer, politician and the current Governor of New York. Spitzer was elected governor in the November 2006 election. announced in late May. They call for brokers and investment management firms to separate research analyst analysis, compensation and recommendations from the investment banking areas. Investment managers that invest money on behalf of the $100 billion CalSTRS portfolio would also have to disclose relationships with corporations in which they invest, such as management of 401(k) plans. "The investment protection principles will go far in our ongoing efforts to improve the integrity of the market place," said Jack Ehnes, CalSTRS chief executive officer. "We're happy to embrace the principles and use the combined power of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. for the common good." Other institutional investors that have adopted similar principles include New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Common Retirement Fund, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. Public Employees Retirement Systems and California's Pooled Money Investment Account. The investment protection principles were added to market reforms initiatives adopted by CalSTRS last April. These reforms deal mainly with the independence of directors, audit committee members and external auditors The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . "We've been shouting about good corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. for years and now the criminal actions that have lately come to light have handed us a megaphone," said Ehnes. "The momentum is on our side now and we expect Wall Street recognizes the need to comply with these principles to rebuild investor confidence." CalSTRS administers retirement, disability and survivor benefits for California's public school educators in grades kindergarten through community college, serving approximately 687,000 members and benefit recipients. Editor: Call for a copy of the full text of investment protection principles. |
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