Current through Register Vol. 35, No. 18, September 24, 2024
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
