The California State Teachers' Retirement System, the third-largest U.S. public pension fund, will require banks investing its money to split research from investment divisions to avoid conflicts of interest.
CalSTRS' investment committee approved the rules Wednesday, said state Treasurer Phil Angelides, a CalSTRS board member. The more than 300 investment banks and broker-dealers that invest the fund's $100 billion must separate research and investment divisions, and submit compliance plans by Dec. 1, Angelides said.
