NAIC supports placement agent regulations that provide transparency

By Lisa Kerner

Charlotte, N.C., Feb. 11 - The National Association of Investment Companies said it supports the Securities and Exchange Commission's adoption of placement agent regulations.

While the regulations will require strict monitoring, disclosure and compliance, they will allow placement agents to "continue to play an important role in promoting investments in minority-owned and managed investment firms," according to an NAIC news release.

"We believe that providing a screen which would qualify placement agents and hold them accountable by industry standards will serve the industry better than a blanket ban," NAIC president and chief executive officer Samuel J. Boyd Jr. said in the release.

NAIC also opposes the proposal to have placement agents registered as lobbyists, said Boyd, because such a measure would "disqualify many excellent agents who provide an invaluable service to the emerging manager private equity industry."

"NAIC is willing and prepared to assist those plan sponsors who have or are interested in instituting emerging manager programs to construct policies that provide transparency and maintain a level playing field," NAIC board of directors chairman and director of Palladium Equity Partners David Perez said in the release.

Washington, D.C.-based NAIC is the industry association for investment companies and individuals that dedicate financial resources to investment in an ethnically diverse marketplace.

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