143.06 SECURITIES DEALERS AND BROKERS.

   The Director is authorized to designate securities dealers and brokers for the purpose of purchasing and selling, but not holding or safekeeping, securities on behalf of the City. Only those securities dealers and brokers so designated by the Director shall be eligible to purchase and sell securities on behalf of the City. Any dealer or broker designated pursuant to this section shall be licensed by the State of Ohio and shall submit the following information to the Director prior to biennial designation by the City:

      (a)   A sworn statement by an authorized representative of the dealer or broker pledging to adhere to "Capital Adequacy Standards" established by the Federal Reserve Bank and acknowledging that the dealer or broker understands that the City has relied upon this pledge in employing the dealer or broker;

      (b)   Audited financial statements for the most recent audit year showing the amount of liquid capital of the dealer or broker and, if applicable, of the parent company of such dealer or broker, and compliance with "Capital Adequacy Standards" established by the Federal Reserve Bank;

      (c)   A written statement from a certified public accountant certifying that it found no material weaknesses in the internal systems controls of the dealer or broker and, if applicable, of the parent company of such dealer or broker, incident to "Capital Adequacy Standards" established by the Federal Reserve Bank; and

      (d)   Such additional information as may be required by the Cash Management and Investment Policy promulgated pursuant to Section 143.09.

   The Director shall not employ any dealer or broker and shall terminate any contract with a dealer or broker which fails to provide the statements and information required by this section; lacks experience or familiarity in providing service to comparable institutional accounts; is perceived by the Director to be in financial difficulty or when the Director deems the employment of the dealer or broker not to be in the best interest of the City.

(Ord. 08-94. Enacted 10-27-08.)