This rule was
file as SIC Rule 91-1.
TITLE 2 PUBLIC FINANCE
CHAPTER 60 INVESTMENT AND
DEPOSIT OF PUBLIC FUNDS
PART 32 COMPLIANCE RULES
2.60.32.1 ISSUING AGENCY:
State Investment Council.
[Recompiled
10/1/01]
2.60.32.2 SCOPE: [RESERVED]
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10/1/01]
2.60.32.3 STATUTORY
AUTHORITY: [RESERVED]
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10/1/01]
2.60.32.4 DURATION:
[Permanent.]
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10/1/01]
2.60.32.5 EFFECTIVE
DATE: February 1, 1992
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10/1/01]
2.60.32.6 OBJECTIVE: [RESERVED]
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2.60.32.7 DEFINITIONS: [RESERVED]
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10/1/01]
2.60.32.8 COMPLIANCE
RULES:
A. The compliance rules set forth below are only applicable
to purchase, sale, and short sale of (i.e., trades in) certain securities and
securities-oriented options and warrants (derivatives). Compliance with these rules is required of
all employees of the state investment office, including the state investment
officer. All employees of the state
investment office will be required to sign a statement attesting to their
having read and understood the compliance rules and will at all times adhere to
them. Such statements must be signed
within ten working days of adoption of these rules or within ten working days
of the start of an employment period, whichever is applicable. Failure to do so may be deemed cause for
dismissal from employment.
B. The state investment officer shall appoint an employee of
the state investment office to serve as compliance officer. The compliance officer shall monitor trading
activities of all state investment office employees for adherence to the
compliance rules. The compliance officer
shall immediately report, in writing, to the state investment officer any infraction of the compliance rules. Such infraction may be deemed cause for
dismissal from employment.
C. The compliance officer shall maintain a restricted list
of company names. A company's name shall
be added to the restricted list immediately upon:
(1) recommendation by
a state investment office employee for inclusion of that company name on the
state investment office securities buy/sell list; or
(2) recommendation by
the advisor(s) to the state investment office for inclusion of that company
name on the state investment office securities buy/sell list.
D. A company's name shall be removed from the restricted
list:
(1) immediately upon
rejection of a recommendation for inclusion of that company name on the state
investment office securities buy/sell list; or
(2) after two full market days following
completion of a state investment office trade program in that company's
securities in accordance with the securities buy/sell list.
E. There are eight compliance rules:
(1) A state investment office employee shall
not trade in the securities or derivatives of companies whose names are on the
restricted list for his (her) own account(s), or any family member account(s),
or any account(s) in which he (she) holds a direct or indirect beneficial interest, or any account(s) in which he
(she) has discretionary investment authority or power of attorney, nor shall he
(she), for any account, advise on trading in the securities or derivatives of
companies whose names are on the restricted list.
(2) It shall be the responsibility of a state
investment office employee intending to trade securities or derivatives of any
company to ascertain if that company's name is on the restricted list.
(3) A state investment office employee shall
submit to the compliance officer, no later than the 30th day following the end
of every quarter, a copy of the quarterly security statements or the period's
three monthly security statements for his (her) own accounts, and any family
member account(s), and any account(s) in which he (she) holds a direct or
indirect beneficial interest, and any account(s) in which he (she) has
discretionary investment authority or power of attorney.
(4) A state investment office employee shall
at no time disclose to any person outside of the state investment office any of
the contents of the state investment office securities buy/sell list or the
contents of the restricted list except as is necessary in the normal course of
business.
(5) a state
investment office employee shall disqualify himself (herself) from
participation in any official act affecting securities in which he (she) has a
financial interest.
(6) No state investment office employee shall
acquire a financial interest at a time when he (she) believes or has reason to
believe that it will be directly affected by his (her) official act.
(7) No state investment office employee shall
use confidential information acquired by virtue of his (her) state employment
for his (her) or another's private gain.
(8) The compliance officer shall, during the
month of January, submit to the secretary of state, in writing, a complete list
of the securities and derivatives owned in all appropriate accounts of state
investment office employees.
F. Note: For Rules V
and VI [now Paragraphs 5 and 6 of Subsection E of 2.60.32.8 NMAC],
"official act" means an official decision, approval, disapproval, or
any other action which involves the use of discretionary authority, except the
term does not mean an act of the legislature or an act of general
applicability.
G. Adopted by the state investment council in an open
meeting on December 18, 1991, to be effective February 1, 1992.
(1) State Investment Council
(2) By:
State Investment Officer
(3) Date:
January 24, 1992
[Recompiled
10/1/01]
HISTORY OF
2.60.32 NMAC:
Pre-NMAC History: The
material in this part was derived from that previously filed with the State
Records Center and Archives:
SIC Rule 91-1,
Compliance Rules, 2/1/92.
History of
Repealed Material: [RESERVED]