§ 11:2261.1 — Investment consultants and money managers; fiduciary relationship; contractual

Louisiana § 11:2261.1

• Jurisdiction: Louisiana
• Title 11: Consolidated Public Retirement Systems

Text

§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.

Legislative History

Acts 2018, No. 115, §1.