Regulations of Connecticut State Agencies
(a) Any person or entity who would be a party to a contract for investment services with the Office of the Treasurer shall disclose to the Treasurer, in writing, all third party fees attributable to such contract before any such contract may take effect.
(b) Any person or entity who is a party to a contract for investment services with the Office of the Treasurer shall disclose to the Treasurer, in writing, all third party fees attributable to such contract.
(c) Such disclosure shall be made annually, and in accordance with the provisions of subsection (d), (e) and (f) of this section, to the Treasurer by firms seeking to provide investment services and shall be in a sworn affidavit in substantially the following form:
State of _____________________)
) SS:
County of ___________________)
I, _____________________, a duly authorized officer and/or representative of ______________________, being duly sworn, hereby depose and say that: (firm name)
1. I am over eighteen (18) years of age and believe in the obligations of an oath.
2. (firm name) seeks to enter into a contract for investment services with the Office of the Treasurer (the "Contract").
3. All third party fees and agreements to pay third party fees attributable to the Contract are as follows:
|
Name of Third Party |
Date and Dollar Amount or Value of Non-Cash Compensation Paid or Attributable to Contract |
Fee Arrangement |
Specific Services performed or to be Performed By Payee 1 |
(Attach additional copies of this page as necessary.)
4. The information set forth herein is true, complete and accurate to the best of my knowledge and belief under penalty of perjury.
Signed: _____________________________
Name: ______________________________
Title: _______________________________
Subscribed and sworn to before me this _____day of ___________, 2002 _________________________________________
Notary Public/Commissioner of the Superior Court
(d) Where a provider of investment services discloses the payment of third party fees and/or agreements to pay third party fees, such provider shall explain how said payments and/or agreements fall within one or more of the following exceptions to the ban on finder’s fees (as more fully set forth in Section 3-13 of the Connecticut General Statutes and regulations thereto):
(1) Compensation earned for the rendering of legal services when provided by an attorney while engaged in the ongoing practice of law;
(2) Compensation earned for the rendering of investment services, other than legal services, when provided by an investment professional while engaged in the ongoing business of providing investment services;
(3) Compensation for placement agent, due diligence or comparable tangible marketing services when paid to a person who is an investment professional (i) engaged in the ongoing business of representing
(4) providers of investment services, or (ii) in connection with the issuance of bonds, notes or other evidence of indebtedness by a public agency;
(5) Compensation earned by a licensed Real Estate Broker or Real Estate Salesperson while engaging in the real estate business on an ongoing basis; or
(6) Payments for client solicitation activities meeting the requirements of Rule 206(4)-3 under the Investment Advisers Act of 1940.
(e) Where a provider of investment services describes in its affidavit the specific services performed by a third party payee, the provider of investment services shall disclose any and all contracts evidencing the terms of the fee arrangement and services.
(f) During the contract term for investment services provided to the Office of the State Treasurer, a provider of investment services has a continuing duty to disclose third party fees, in writing, within sixty (60) days upon any change to a prior disclosure.
(Adopted effective July 5, 2002)