Corporate Governance

Pension Funds? Principles for Washington

By Fei-Lu Qian

In an effort to restore confidence in the capital market system, at least ten leading public pension funds of the United States have developed and announced a set of financial regulation principles. The ?Principles of Financial Regulation Reform: A Model for Change? address five key areas: transparency, independence of regulating agencies, corporate governance, investment opportunities, and systemic risk. For example, the principles call on the importance of ?greater transparency and visibility to investors, regulators and other market participants.? The principles also call on the ?reestablishment of the SEC?s role as a voice and protector of investors? and the creation of ?a forum for institutional investors to communicate with policy makers on developments in the markets? to assist regulators on market developments and stability.

The group issued the following statement: ?We hope these market principles will significantly contribute to the solutions that will make markets more effective and restore investor confidence. We stand ready, individually and collectively, to help make that happen.?

The public pension funds that have endorsed these principles include:

California Public Employees? Retirement System
California State Teachers? Retirement System
Colorado Public Employees? Retirement Association
Connecticut Retirement Plans and Trust Funds
Los Angeles City Employees? Retirement System
Los Angeles County Employees? Retirement System
Los Angeles Fire and Police Pensions
Maryland State Treasurer
New York State Common Retirement Fund
State Universities Retirement System of Illinois

Full post as published by PomTalk on March 23, 2009 (boomark / email).