Commission Focuses On Kentucky Retirement Systems

• {Kentucky}...The U.S. Securities and Exchange Commission, which regulates investment markets, wants to depose officials at the Kentucky Retirement Systems as part of its "informal inquiry" into the role of placement agents at the $13 billion pension fund. In June, state Auditor Crit Luallen issued a report on business practices at KRS that revealed nearly $11.6 million in fees paid or committed to placement agents from 2007 to 2010. Several current and former KRS executives have received subpoenas from the SEC, and all members of the KRS board of trustees since 2007 are expected to be deposed. Attorneys for KRS are trying to negotiate a deal with the SEC so the interviews are conducted in Kentucky rather than forcing everyone to travel to New York. Luallen said placement agent Glen Sergeon of New York enjoyed close access to KRS through his previously undisclosed relationship with Adam Tosh, then KRS' chief investment officer. Tosh resigned in 2010, shortly after internal auditors at KRS questioned him about nearly $6 million in fees paid to Sergeon.