Putnam Investments will be cracking down on the perks brokers use to entice fund managers and other executives to give them their business, Reuters reports.
Beginning April 1, Putnams 5,000 employees will not be allowed to accept perks with values of more than $150, excluding meals. If the gift is a ticket, it must be for an event in the area where they work, they will not be allowed to bring their spouse and an employee cannot accept more than six such boondoggles a year. Last but not least, the purpose of the event has to be for business. These are the new rules that Tony Ruys de Perez, Putnams new chief compliance officer, spelled out.
In the past, fund managers have accepted such lavish sprees as tickets to celebrity golf tournaments, all-expense paid trips to the Super Bowl and spa holidays. As far as business meals are concerned, some, but not all, of the aforementioned rules apply, Ruys de Perez said, without spelling out any further details.
Putnam is the first firm implicated in the fund scandal to lay down such laws on business perks. It has also reduced its fees, pledged to provide more transparency on how its fund managers are paid and has changed its bonus structure.