Regulatory bodies in New York have become increasingly aggressive in monitoring and prosecuting abuses of the process by which public pension monies are invested. The City of New York has released an important opinion for individuals and entities who do business with New York City's pension funds, concluding that seeking investments from the New York City pension funds constitutes "lobbying."
This significant determination means that any individual or entity that is seeking investment from New York City pension funds must register itself as a lobbyist (assuming a low threshold of compensation is exceeded). It also means that success fees related to obtaining these funds are prohibited, and individuals and entities are subject to significant additional penalties and liabilities for failure to follow this law carefully.
To read a copy of the advisory opinion by the New York City Corporation Counsel, please click here. Take note that the New York City Clerk—the entity charged with enforcing the City Lobbying Law—has committed to aggressively enforce this new interpretation