Ohio § 4123.441

§ 4123.441.

(A) The administrator of workers' compensation, with the advice and consent of the bureau

of workers' compensation board of directors shall employ a person or designate an

employee of the bureau of workers' compensation who is designated as a chartered financial

analyst by the CFA institute and who is licensed by the division of securities in

the department of commerce as a bureau of workers' compensation chief investment officer

to be the chief investment officer for the bureau of workers' compensation.  After ninety days after September 29, 2005, the bureau of workers' compensation

may not employ a bureau of workers' compensation chief investment officer, as defined

in section 1707.01 of the Revised Code , who does not hold a valid bureau of workers' compensation chief investment officer

license issued by the division of securities in the department of commerce.  The board shall notify the division of securities of the department of commerce

in writing of its designation and of any change in its designation within ten calendar

days after the designation or change. (B) The bureau of workers' compensation chief investment officer shall reasonably supervise

employees of the bureau who handle investment of assets of funds specified in this

chapter and Chapters 4121., 4127., and 4131. of the Revised Code with a view toward

preventing violations of Chapter 1707. of the Revised Code, the “Commodity Exchange

Act,” 42 Stat. 998, 7 U.S.C. 1 , the “Securities Act of 1933,” 48 Stat. 74, 15 U.S.C. 77a , the “Securities Exchange Act of 1934,” 48 Stat. 881, 15 U.S.C. 78a , and the rules and regulations adopted under those statutes.  This duty of reasonable supervision shall include the adoption, implementation,

and enforcement of written policies and procedures reasonably designed to prevent

employees of the bureau who handle investment of assets of the funds specified in

this chapter and Chapters 4121., 4127., and 4131. of the Revised Code, from misusing

material, nonpublic information in violation of those laws, rules, and regulations. For purposes of this division, no bureau of workers' compensation chief investment

officer shall be considered to have failed to satisfy the officer's duty of reasonable

supervision if the officer has done all of the following: (1) Adopted and implemented written procedures, and a system for applying the procedures,

that would reasonably be expected to prevent and detect, insofar as practicable, any

violation by employees handling investments of assets of the funds specified in this

chapter and Chapters 4121., 4127., and 4131. of the Revised Code; (2) Reasonably discharged the duties and obligations incumbent on the bureau of workers'

compensation chief investment officer by reason of the established procedures and

the system for applying the procedures when the officer had no reasonable cause to

believe that there was a failure to comply with the procedures and systems; (3) Reviewed, at least annually, the adequacy of the policies and procedures established

pursuant to this section and the effectiveness of their implementation. (C) The bureau of workers' compensation chief investment officer shall establish and

maintain a policy to monitor and evaluate the effectiveness of securities transactions

executed on behalf of the bureau.