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Placement Agents Would Be Subject To Ethics Rules

Rep. Mike Cherry / Photo by LRC Public Information

FRANKFORT, Ky. - Placement agents involved in financial investments made by the Kentucky Retirement Systems would be subject to the state's ethics laws under a bill that cleared the Senate on Monday.

The legislation is an offshoot of a state audit that raised questions about the use of placement agents who advise the state about how to invest retirement funds for teachers and government workers. It passed the Senate 36-0.

Democratic Rep. Mike Cherry of Princeton, chairman of the House State Government Committee, has been pushing to hold placement agents more accountable.

Cherry's bill, which now returns to the House for final passage, also requires placement agents to register as lobbyists. That means they'll have to make public reports about their income and expenses.