Pay-to-Play: New Restrictions for Placement Agents Soliciting Public Pension Funds in California

November 04, 2010
The State of California recently adopted a controversial law, AB 1743, that will require persons who solicit public pension plans on behalf of advisers, including advisers to private equity and hedge funds, to register under State lobbying laws. The new law will apply to both third-party placement agents as well as the internal sales staff of an adviser. This update provides an overview of the significant provisions of the new law.