November 11, 2015: IVCA updates list of 'Prohibited class' of elected officials

IVCA updates list of 'Prohibited class' of elected officials

November 11, 2015

Guidance from IVCA-PAC on Political Contributions in light of SEC Regulations

The IVCA-PAC instituted new policies in mid March 2011 to ensure compliance with "pay to play" rules on the federal, state and local levels of government.

The IVCA-PAC will contribute only to candidates or members of the Illinois General Assembly. It will no longer make contributions to statewide officials (Governor, Lt. Governor, Comptroller, Attorney General or any other elected officials (or candidates for these elective offices) at the County or City levels of government as these positions frequently hold pension board positions.

As part of its new compliance processes, the IVCA-PAC will maintain a "prohibited persons list" of offices and persons deemed to have, directly or indirectly, the legal authority to cause or can influence the awarding of an investment advisory contract. Currently in Illinois, the IVCA-PAC prohibited persons list includes the following five such offices and one additional elected official on the list:

At the State level:

  • Bruce Rauner - The Governor appoints pension fund board members
  • Michael Frerichs - The Treasurer serves on a pension fund board and invests the State's money.
  • Leslie Geissler Munger - The Comptroller serves on the Illinois State Board of Investments (ISBI).
  • Seat Unassigned - One member of the Illinois House serves on ISBI's Board.
  • Senator James F. Clayborne - One member of the Illinois Senate serves on ISBI's Board.
  • Justice Mary S. Schostok of the Illinois Appellate Court serves on ISBI's Board.

In addition to this prohibited list of officials, anyone in a firm who gives individually to candidates for elective office should be cautious and take steps to ensure no candidate receiving campaign contributions from them has influence over any public pension fund selection of investment advisors or the awarding of government contracts.

So for example, firms which have or wish to have Chicago pension funds as limited partners are prohibited from contributing to the re-election campaign of:

Curt Summers - Chicago City Treasurer serves on the Boards of:

  • Municipal Employees' Annuity & Benefit Fund
  • Laborers' Retirement Board Employees' Annuity & Benefit Fund of Chicago
  • Policeman's Annuity & Benefit Fund of Chicago
  • Fireman's Annuity & Benefit Fund of Chicago

The following at a county and city level also serve on the pension fund boards:

  • Gwen Henry - DuPage County Treasurer is on the IMRF Board
  • Susana Mendoza, Chicago City Clerk is a Trustee of the Fireman's Annuity & Benefit Fund of Chicago

It is the responsibility of the individual to determine whether or not his or her campaign contributions do not violate any federal, state or local pay to play rules. The SEC rules are the most restrictive and carry significant penalties for the firm if violated. The IVCA-PAC has taken steps to ensure full compliance with all relevant rules in this area and as part of the compliance process requires any candidate for the Illinois General Assembly being considered for a PAC contribution to sign the Compliance Certification letter certifying that he or she does not have influence in any public pension funds' selection of investment advisors. IVCA suggests that firms review the Compliance Certification letter, adapt it for your own use and provide it to any person in the firm who makes campaign contributions on an individual basis. (You must log-in at as an IVCA member to view this form.)

For more information on these compliance policies and procedures go to the IVCA website, log-in at the Members site and click on the PAC dropdown.