Fund Fire - January 19, 2006

Consultants say the recent Securities and Exchange Commission probe into consulting practices in the pension industry has affected the hiring process they go through for pension funds. At the Opal Financial Group sponsored Public Funds Summit here, four consultants touched on issues regarding pay to play and consultant evaluation, among other topics. The SEC probe that spanned two years led pension plans to take another look at the types of activities their consultants were engaging in. In fact, according to most panelists, responding to a request for proposals post-SEC review, takes more time and more disclosure... The increased scrutiny means that some consultants may be scratched from potential business as some sponsors are staying away from firms that offer products to both managers and pensions, said Steven Harding, SVP at consulting firm Independent Fiduciary Services.