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McKinsey Statement on Independent Third-Party Report on Separation of MIO and McKinsey

On February 18, 2019, Luskin, Stern & Eisler LLP, special counsel to the Financial Oversight & Management Board (FOMB) issued an independent report concerning the separation of McKinsey and MIO, and McKinsey’s disclosure practices in the Puerto Rico bankruptcy. McKinsey’s statement on the report is below, and the full report is available here.

The Final Investigative Report issued today by Luskin, Stern & Eisler LLP, special counsel to the Financial Oversight & Management Board (FOMB), finds that McKinsey’s disclosures in connection with its retention by and work for the FOMB fully complied with all legal requirements and requirements of the FOMB and McKinsey’s consulting activities are operationally separate from MIO and MIO’s investment activities.

Mr. Luskin is the first independent expert who has collected and reviewed the facts concerning the separation of McKinsey and MIO. His report corrects inaccurate allegations of conflict of interest by making clear that no McKinsey consultant knew of any financial interest that could have influenced his or her work or had any ability to direct any investment of MIO or its third-party managers.

These findings are consistent with what we’ve said from the beginning: the operations of MIO and McKinsey are separate; our disclosures were fully compliant with the laws governing the FOMB; we have delivered our advice to the Board with objectivity and complete independence; and neither McKinsey nor MIO has benefited in any inappropriate way as a result of McKinsey serving FOMB.