2018 Louisiana Laws
Revised Statutes
TITLE 11 - Consolidated Public Retirement
RS 11:2261.1 - Investment consultants and money managers; fiduciary relationship; contractual terms; prescription
§2261.1. Investment consultants and money managers; fiduciary relationship; contractual terms; prescription
A.(1) Each of the following shall be a fiduciary of the system and shall be subject to R.S. 11:263:
(a) Any person who agrees by written contract to exercise any discretionary authority or discretionary control with respect to the management of system funds or assets, including money managers.
(b) Any person who agrees by written contract to render investment advice or services for compensation, direct or indirect, with respect to system funds or assets, including investment consultants.
(2) The written contract governing the relationship between any person described in Paragraph (1) of this Subsection and this system shall contain a provision whereby the person described in Paragraph (1) of this Subsection expressly agrees to and acknowledges the following:
(a) The provisions of this Section are applicable to the person.
(b) The person shall act with the care, skill, prudence, and diligence under the circumstances prevailing that a prudent institutional investor acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.
(c) The exclusive, original jurisdiction for any proceeding involving this Section shall be the Nineteenth Judicial District Court of Louisiana and the person consents to such personal and subject matter jurisdiction and that such proceeding is not removable to any federal court without the express written consent of the board of trustees of this system.
B. Notwithstanding any other provision of law to the contrary, any judicial or regulatory proceeding or action initiated by this system pursuant to this Section shall be a personal action subject to the liberative prescription of ten years.
C. Notwithstanding any other provision of law to the contrary, a civil lawsuit filed by this system shall suspend the running of prescription for the institution of criminal prosecution for the following criminal charges arising from the same facts and circumstances upon which the civil lawsuit is based until the date that a final, non-appealable judgment has been rendered in the civil lawsuit:
(1) A charge based on the misappropriation of any money or thing of value, or any theft or fraud committed relative thereto, by any person described in Paragraph (A)(1) of this Section who by virtue of his office, employment, or fiduciary relationship with this system had been entrusted with or had control of such money or thing of value.
(2) A charge of false accounting committed by a person or agent of a person described in Paragraph (A)(1) of this Section.
D. Any person described in Paragraph (A)(1) of this Section shall disclose in any written or verbal communication with any trustee or employee of this system any judicial or regulatory proceeding relative to the management of funds or assets or investment advice or services in which such person was or is a deponent, witness, named party, or employee of a named party. Failure to make such disclosure shall result in nullification of any contract or agreement existing between this system and such person or employer of such person.
Acts 2018, No. 115, §1.
