Investment Adviser

Authorized Financial Institutions, Depositories, and Broker/Dealers
1. Authorized Financial Institutions, Depositories, and Broker/Dealers
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 selected by conducting a process of due diligence. These may include “primary” dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
A. The investment officer shall determine which financial institutions are authorized to provide investment services to [entity]. Institutions eligible to transact investment business with [entity] include:
1. Primary government dealers as designated by the Federal Reserve Bank;
2. Nationally or state-chartered banks;
3. The Federal Reserve Bank; and,
4. Direct issuers of securities eligible for purchase.
B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the [entity] shall be at the sole discretion of the [entity].
C. All broker/dealers who desire to become qualified for investment transactions must supply the following (as appropriate):
• Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines
• Proof of FINRA certification
• Proof of state registration
• Completed broker/dealer questionnaire (not applicable to Certificate of Deposit counterparties)
• Certification of having read and understood and agreeing to comply with the [entity’s] investment policy.
• Evidence of adequate insurance coverage.
D. All financial institutions who desire to become depositories must supply the following (as appropriate):
• Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines
• Proof of state registration
• Evidence of adequate insurance coverage.
E. A periodic review of the financial condition and registration of all qualified financial institutions and broker/dealers will be conducted by the investment officer