{"id":5126,"date":"2011-02-23T00:00:00","date_gmt":"2011-02-23T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/02\/kentucky_workers_compensation"},"modified":"2022-04-04T13:03:16","modified_gmt":"2022-04-04T18:03:16","slug":"kentucky-workers-compensation","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/kentucky-workers-compensation\/","title":{"rendered":"Kentucky Workers’ Compensation Funding Commission Paid Morgan Stanley Smith Barney $510,000 for Financial Advice, Says Auditor"},"content":{"rendered":"

State auditor Crit Luallen is accusing the Kentucky Workers’ Compensation Funding Commission of breaking the law when, rather than seeking financial advice from the Kentucky Finance and Administration Cabinet’s Office of Fiscal Management, it paid Morgan Stanley Smith Barney<\/a> for private financial advice. Luallen contends that the workers\u2019 compensation agency has paid the broker-dealer about $510,000 for help received in making investments since 1999. The funding commission\u2019s board has accepted the audit\u2019s findings and it will only work with state-employed advisers from now on.<\/p>\n

The Kentucky Workers’ Compensation Funding Commission oversees over $350 million in assets. It collects over $70 million annually from assessments on employers’ workers’ compensation premiums. The funding commission\u2019s investments suffered $71 million in lost investments during the fiscal years of 2009 and 2008.<\/p>\n

There has been no evidence that there were any conflicts of interest between Morgan Stanley and the funding commission. The broker-dealer is defending its handling of the agency\u2019s investments. Morgan Stanley senior vice president Frank Thompson says the firm did an \u201coutstanding job\u201d and that it strongly recommended that the funding commission not work with the state\u2019s OFM, which it said proposed poor investments.<\/p>\n

Related Web Resources:<\/strong><\/p>\n

Kentucky Workers\u2019 Compensation Panel Criticized Over Outside Adviser<\/a>, Insurance Journal, February 22, 2011 Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

State auditor Crit Luallen is accusing the Kentucky Workers’ Compensation Funding Commission of breaking the law when, rather than seeking financial advice from the Kentucky Finance and Administration Cabinet’s Office of Fiscal Management, it paid Morgan Stanley Smith Barney for private financial advice. Luallen contends that the workers\u2019 compensation agency has paid the broker-dealer about […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3787,3984],"tags":[],"class_list":["post-5126","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-morgan-stanley","category-municipal-advisors"],"yoast_head":"\nKentucky Workers' Compensation Funding Commission Paid Morgan Stanley Smith Barney $510,000 for Financial Advice, Says Auditor — Investor Lawyers Blog — February 23, 2011<\/title>\n<meta name=\"description\" content=\"State auditor Crit Luallen is accusing the Kentucky Workers' Compensation Funding Commission of breaking the law when, rather than seeking financial — February 23, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, 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