SubTitle3-13j-1_3-13j-4. Disclosure of Third Party Fees—Compensation Related to Contracts for Investment Services, Title3 State Elective Officers, Regulations of Connecticut State Agencies

Regulations of Connecticut State Agencies (Last Updated: June 14,2023)

Title3 State Elective Officers

SubTitle3-13j-1_3-13j-4. Disclosure of Third Party Fees—Compensation Related to Contracts for Investment Services

Sec. 3-13j-1. Definitions

Latest version.

As used in sections 3-13j-1 to 3-13j-3, inclusive, of the Regulations of Connecticut State Agencies:

(a) “Finder's fee” has the same meaning as provided in section 3-13l of the Connecticut General Statutes;

(b) “Investment services” has the same meaning as provided in section 9-612 of the Connecticut General Statutes;

(d) “Treasurer” means the Treasurer of the State of Connecticut.

(Adopted effective July 5, 2002; Amended September 13, 2016)

Sec. 3-13j-2. Disclosure of third party fees

Latest version.

(a) Any person or entity who would be a party to a contract for investment services with the Office of the Treasurer shall disclose to the Treasurer, in writing, all third party fees attributable to such contract before any such contract may take effect.

(b) Any person or entity who is a party to a contract for investment services with the Office of the Treasurer shall disclose to the Treasurer, in writing, all third party fees attributable to such contract. Such disclosure shall be made annually.

(c) Any disclosure required to be made under subsections (a) and (b) of this section shall be made in accordance with the provisions of subsections (d), (e) and (f) of this section, and shall be in a sworn affidavit in substantially the following form:

State of _______________________

County of _____________________

)

SS:

I, _________________________, a duly authorized officer and/or representative of

_________________________, being duly sworn, hereby depose and say that:

(firm name)

1. I am over eighteen (18) years of age and believe in the obligations of an oath.

2.__________(firm name)_________ (a) seeks to enter into a contract for investment services with the Office of the Treasurer, or (b) is a party to a contract for investment services with the Office of the Treasurer (the "Contract").

3. All third party fees and agreements to pay third party fees attributable to the Contract are as follows:

Name of Third Party Payee	Date and Dollar Amount or Value of Non-Cash Compensation Paid or Attributable to Contract	Fee Arrangement	Specific Services Performed or To Be Performed By Third Party Payee¹

(Attach additional copies of this page as necessary.)

¹Where a provider of investment services describes in its affidavit the specific services performed by a third party payee, the provider of investment services shall disclose any and all contracts evidencing the terms of the fee arrangement and services.

4. The information set forth herein is true, complete and accurate to the best of my knowledge and belief under penalty of perjury.

Signed: ___________________________________________________________

Name: ____________________________________________________________

Title: _____________________________________________________________

Subscribed and sworn to before me this ___ day of __________, 20___.

_________________________________________

Notary Public/Commissioner of the Superior Court

(d) Where a provider of investment services discloses the payment of third party fees or agreements to pay third party fees, such provider shall explain how said payments or agreements fall within one or more of the following exceptions to the ban on finder's fees set forth in section 3-13l of the Connecticut General Statutes:

(1) Compensation earned for the rendering of legal services when provided by an attorney while engaged in the ongoing practice of law;

(2) Compensation earned for the rendering of investment services, other than legal services, when provided by an investment professional while engaged in the ongoing business of providing investment services;

(3) Compensation for placement agent, due diligence or comparable tangible marketing services when paid to a person who is an investment professional (i) engaged in the ongoing business of representing providers of investment services, or (ii) in connection with the issuance of bonds, notes or other evidence of indebtedness by a public agency;

(4) Compensation earned by a licensed real estate broker or real estate salesperson while engaging in the real estate business on an ongoing basis; or

(5) Payments for client solicitation activities meeting the requirements of Rule 206(4)-3 under the Investment Advisers Act of 1940.

(e) Where a provider of investment services describes in its affidavit the specific services performed by a third party payee, the provider of investment services shall disclose any and all contracts evidencing the terms of the fee arrangement and services, and such additional information regarding the third party payee and the actual services provided as the Treasurer may request in order to determine whether such payments are finder’s fees.

(f) During the contract term for investment services provided to the Office of the Treasurer, a provider of investment services has a continuing duty to disclose third party fees, in writing, no later than thirty (30) days after the effective date of any change to a prior disclosure.

(Adopted effective July 5, 2002; Amended September 13, 2016)

Sec. 3-13j-3. Public inspection of disclosures

Latest version.

Information disclosed in accordance with section 3-13j-2 of the Regulations of Connecticut State Agencies shall be made available for public inspection in accordance with the Freedom of Information Act, as defined in section 1-200 of the Connecticut General Statutes.

(Adopted effective July 5, 2002)

Sec. 3-13j-4. [Repealed]

Latest version.

Repealed September 13, 2016.

(Adopted effective July 5, 2002; Repealed September 13, 2016)