Court Opinion

ID: 9391321
Source: CourtListenerOpinion
Date Created: 2023-05-01 20:08:08.250539+00
Date Added: 2024-06-11T17:18:40.803827
License: Public Domain

Rule 1905. Investment Advisory Board.

      (a)   General. There is hereby established the Investment Advisory Board
            (‘‘Board’’), which shall consist of [eight] nine voting members. The
            Supreme Court shall appoint [four (4)] five members and the Board’s
            chair. The Disciplinary Board of the Supreme Court, the Pennsylvania
            Lawyers Fund for Client Security Board, the Pennsylvania Continuing Legal
            Education Board and the Pennsylvania Board of Law Examiners (‘‘the
            program boards’’) shall each appoint one [(1)] member to serve on the
            Board. The Court Administrator and Counsel to the Supreme Court shall
            serve as [an] ex officio members to the Board. All members of the Board
            shall serve at the pleasure of the Supreme Court. [The Board shall
            annually designate its chair.]

      (b)   Qualifications. To the extent possible, [A]all appointees to the Board
            shall possess knowledge and expertise in investments and knowledge of
            public sector investment funds. If no current program board member is
            professionally qualified or able to serve on the Board, the program board
            will appoint a prior Board member or a non-program board member with the
            requisite expertise.

      (c)   Responsibilities. The Board shall provide recommendations to the
            Supreme Court with regard to the development and implementation of an
            investment policy for the program boards that will maximize investment
            yields while minimizing risk. In addition, the Board shall provide oversight
            and monitoring of the activity of the investment portfolios. On a fiscal year
            basis, the Board shall provide the Supreme Court with a review of its
            activities and appropriate recommendations for further action. The Board’s
            fiscal year shall begin on July 1 and end on June 30.

      (d)   Procedure. All actions of the Board shall be determined by majority vote.
            The Court Administrator of Pennsylvania will have no voting power except
            in the case of a tie. Counsel to the Supreme Court will serve as a non-
            voting member.

      (e)   Administrative. The Administrative Office of Pennsylvania Courts shall
            provide necessary administrative assistance to the Board and shall pay the
            cost thereof as well as the necessary travel and other expenses of the
            members of the Board, all staff and any representative of the Supreme
            Court. The AOPC shall be reimbursed by the program boards for their pro
            rata share of necessary travel and other expenses.

      (f)   Immunity. Members of the Board, its staff and any other representative of
            the Supreme Court to the Board shall be immune from civil suit for any
            conduct in the course of their official duties. Legal costs incurred by Board
            members in defense of such matters will be borne by the Board but passed
             through to the program boards in accordance with Rule 1905(e). Such costs
             must be approved by the Board prior to being obligated for payment or
             reimbursement.

       Comment: In 2001, the Supreme Court asked the Administrative Office of
Pennsylvania Courts to review the investment activities of the Court’s three affiliated
boards (the Disciplinary Board, Pennsylvania Lawyers Fund for Client Security and the
Pennsylvania Continuing Legal Education Board) and to make recommendations for the
improved investment stability, performance, operation and cost efficiencies of the boards’
investments. Following collection of information and consultation with investment
advisors, the AOPC recommended the formation of an Investment Advisory Board to
assist the Supreme Court in its oversight and consolidation of investment portfolios that
would enhance returns and reduce investment fees. In 2007 the Pennsylvania Board of
Law Examiners became a program board member.

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