State Treasurer | 3-13j-1 to 3-13j-4 - Disclosure of Third Party Fees—Compensation Related to Contracts for Investment Services

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.

Regulations of Connecticut State Agencies TITLE 3. State Elective Officers

Agency State Treasurer

Subject Disclosure of Third Party Fees—Compensation Related to Contracts for Investment

Services Inclusive Sections

§§ 3-13j-1—3-13j-4

CONTENTS

Sec. 3-13j-1. Definitions Sec. 3-13j-2. Disclosure of third party fees Sec. 3-13j-3. Public inspection of disclosures Sec. 3-13j-4. Effective date (Repealed)

Revised: 2016-12-2 R.C.S.A. §§ 3-13j-1—3-13j-4 - I -

Regulations of Connecticut State Agencies TITLE 3. State Elective Officers

State Treasurer §3-13j-2

Disclosure of Third Party Fees—Compensation Related to Contracts for Investment Services

Sec. 3-13j-1. Definitions As used in sections 3-13j-1 to 3-13j-3, inclusive, of the Regulations of Connecticut State

Agencies: (a) “Finder’s fee” has the same meaning as provided in section 3-13l of the Connecticut

General Statutes; (b) “Investment services” has the same meaning as provided in section 9-612 of the

Connecticut General Statutes; (c) “Third party fees” has the same meaning as provided in section 3-13j of the

Connecticut General Statutes; and (d) “Treasurer” means the Treasurer of the State of Connecticut.

(Adopted effective July 5, 2002; Amended September 13, 2016)

Sec. 3-13j-2. Disclosure of third party fees (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. Such disclosure shall be made annually.

(c)  Any disclosure required to be made under subsections (a) and (b) of this section shall be made in accordance with the provisions of subsections (d), (e) and (f) of this section, 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)_________ (a) seeks to enter into a contract for investment services with the Office of the Treasurer, or (b) is a party to 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:

Revised: 2016-12-2 R.C.S.A. §§ 3-13j-1—3-13j-4 - 1 -

Regulations of Connecticut State Agencies TITLE 3. State Elective Officers

§3-13j-2 State Treasurer

Name of Third Date and Dollar Fee Arrangement Specific Services Party Payee Amount or Value Performed or To Be

of Non-Cash Com- Performed By Third pensation Paid or Party Payee 1

Attributable to Contract

(Attach additional copies of this page as necessary.) 1Where 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.

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 __________, 20___.

_________________________________________ Notary Public/Commissioner of the Superior Court

(d) Where a provider of investment services discloses the payment of third party fees or agreements to pay third party fees, such provider shall explain how said payments or agreements fall within one or more of the following exceptions to the ban on finder’s fees set forth in section 3-13l of the Connecticut General Statutes:

(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 providers of investment services, or (ii) in connection with the

R.C.S.A. §§ 3-13j-1—3-13j-4 Revised: 2016-12-2 - 2 -

Regulations of Connecticut State Agencies TITLE 3. State Elective Officers

State Treasurer §3-13j-4

issuance of bonds, notes or other evidence of indebtedness by a public agency; (4) Compensation earned by a licensed real estate broker or real estate salesperson while

engaging in the real estate business on an ongoing basis; or (5) 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, and such additional information regarding the third party payee and the actual services provided as the Treasurer may request in order to determine whether such payments are finder’s fees.

(f) During the contract term for investment services provided to the Office of the Treasurer, a provider of investment services has a continuing duty to disclose third party fees, in writing, no later than thirty (30) days after the effective date of any change to a prior disclosure. (Adopted effective July 5, 2002; Amended September 13, 2016)

Sec. 3-13j-3. Public inspection of disclosures Information disclosed in accordance with section 3-13j-2 of the Regulations of

Connecticut State Agencies shall be made available for public inspection in accordance with the Freedom of Information Act, as defined in section 1-200 of the Connecticut General Statutes. (Adopted effective July 5, 2002)

Sec. 3-13j-4. Effective date (Repealed) Repealed September 13, 2016.

(Adopted effective July 5, 2002; Repealed September 13, 2016)

Revised: 2016-12-2 R.C.S.A. §§ 3-13j-1—3-13j-4 - 3 -