(A) A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers or investment advisors selected by conducting a process of due diligence.
(B) These may include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
(1) The Treasurer shall determine which financial institutions are authorized to provide investment services to the town. Institutions eligible to transact investment business with the town include:
(a) Primary government dealers as designated by the Federal Reserve Bank;
(b) Nationally or state-chartered banks;
(c) The Federal Reserve Bank; and
(d) Direct issuers of securities eligible for purchase.
(2) Upon advice of the Investment Board, the final selection of financial institutions and broker/dealers and/or investment advisors authorized to engage in transactions with the town shall be at the discretion of Mayor with the concurrence of the Town Council.
(3) All broker/dealers and/or investment advisors who desire to become qualified for investment transactions may be required to supply the following upon written request (as appropriate):
(a) Proof of FINRA certification (Financial Industry Regulatory Authority);
(b) Proof of state registration;
(c) Certification of having read and understood and agreeing to comply with the town’s investment policy; and
(d) Evidence of adequate insurance coverage.
(4) A periodic review of the financial condition and registration of all qualified financial institutions and broker/dealers and/or investment advisors will be conducted by the Treasurer.
(Prior Code, § 3.A08.070) (Ord. 2018-22, passed 12-12-2018)