Kevin Fine, CalPERS team member and chief compliance officer, provided a standing update on the enterprise compliance risk and governance program at the Sept. 17 Risk and Audit Committee meeting. He said the program’s work over the last two years focused on automating routine filings and expanding monitoring tools to strengthen oversight.

Fine said the program has implemented a new technology vendor and automated data feeds "to reduce manual processes and improve data integrity," and described a series of modules the office has rolled out. "We are on track to implement a more formal third party agreement conflict check which leverages the expanded technology and data foundation," he said. He added that the compliance function aims "to provide clear advice, guidance and oversight to reinforce compliance with CalPERS financial disclosure requirements."

Why it matters: the compliance office oversees state financial-disclosure rules, conflict-of-interest screening, and related ethics requirements for CalPERS covered persons. Improved automation and monitoring change how the agency detects potential conflicts and documents staff compliance with state rules.

Key facts presented by Fine included that the new monitoring tools oversaw more than 3,000 trades across about 1,200 accounts in fiscal year 2024–25, and that the gift-and-entertainment attestation platform—implemented in October 2023—achieved roughly 90% monthly attestation timeliness and generated about 270 inquiries in fiscal 2024–25. He also reported that more than 3,000 Form 700 reviews have been completed since 2022 and that enhanced reviews have reduced amendment requests by roughly 70% since 2021. Fine said ECRG’s annual compliance survey returned a 95% positive response rate for fiscal 2024–25.

Committee members asked how the office will measure future progress. Frank Ruffino praised the report and asked "how will the board be able to measure your progress?" Fine answered that the office is identifying metrics to add to monthly compliance reports and will continue to present updates as the programs mature. Jose Luis Pacheco asked whether the change in filing responsibility to the Secretary of State affected the Form 700 review process; Fine said CalPERS continues a 100% review of filers and will advise board members when amendments appear advisable even though CalPERS is no longer the filing officer.

The presentation emphasized ongoing aims: reduce manual processing through automation, expand rule sets for surveillance of covered-person activity, and embed compliance training into onboarding and recurring education. Fine closed by saying the program will continue to evolve "by leveraging technology for disclosures and other routine filings to gain the advantage of automation while upskilling team members through continuous education and cross training."