FL S2186

Creates the Agency for Professional Fund Management within the State Board of Administration effective January 1, 2011, consisting of five members appointed by the board and subject to Senate confirmation, with members required to have minimum 5 years of experience managing at least $1 billion in financial assets.

Establishes an audit committee of three board-appointed members to oversee financial reporting, internal controls, risk assessment, and audit processes, requiring the board to produce annual financial statements for Florida Retirement System programs audited by independent third-party firms.

Removes the requirement that the Governor vote in favor of executive director selection and requires the board to appoint a search committee including at least three Investment Advisory Council members to develop position requirements and recommend qualified candidates.

Mandates the Investment Advisory Council initiate compensation studies every 5 years to determine competitive salary ranges for board positions based on comparable public-sector investment entities and requires quarterly council meetings with board staff and quarterly reports to trustees.

Requires investment advisers and managers to annually certify compliance with fiduciary standards and prohibits Investment Advisory Council members or their affiliated organizations from contracting to provide investment services during their tenure and for 2 years thereafter.