Res 2006-193 - Laserfiche WebLink

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I , I All investment purchases will be executed using the competitIve bidding process and settled on a delivery versus payment (DVP) basis, A minimum of three competitive offers on the purchase of every security will be obtained. All investment purchases will be executed in compliance wIth the Internal Revenue Service's Fair Market Rules. Vll. ETHICS ANI) CONFLICTS Of" I NTERl1,sT Investment officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers shall disclose in vmting to the City Manager any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the CIty'S portfolio. Investment officers and employees involved in the inveSlment process with personal business relationships or relatives within the second degree of affinity or consangumity seeking to sell securities to the City of San Marcos sha1l disclose the relationship and fde a statement With the Texas Ethics Commission and the City Council. Personal business relationships are defined in the Public Funds lnvestment Act. VBI. AUTHORIZED BROKERlDEi\LERS AND FINANCIAL INSTITUTIONS The City o~jective of safety requires that it transact business with financially strong broker/dealers and financial institutions. Therefore, financial broker/dealers and institutions shall be subject to a screening process to eliminate those dealers and institutions that lack economic viability or whose past practices put the safety of public capital at risk. Purchases of securities shall he limited to authorized broker/dealers and instltullons approved by the Investment Committee (SectIOn V). The Investment Officer{s) will maintain thIS list authorized of dealers and institutions. This list mayincll.lde "primary" dealers or regional dealers thaI qualify under Securities and Exchange Commission Rule 15C3-1 (unitorm net capital rule). Authorized dealers and institutions shall provide proof of Nalional Association of Security Dealers certification, an annual audited financial statement, and a completed broker/dealer questionnaire. Each dealer and institution with whom the City transacts busmess will be provided a copy of this Policy to assure that they are familiar with the goals and objeetives of the investment progr.am. The broker/dealer or institution wiJ1 be required to return a signed copy afthe CertificatIOn by Business Organization substantially in the fonn provided as Appendix 8, If the brokerage subsidiary oftlle City's banking services bank is used, any secunty purchased for it must be safekept in the bank's trust department to fulfill DVP requirements Banking institutions may be lIsed [or City time and demand deposits. These depositories will co111inuously provide their most recent "Consohdated Report of Condition" (call report). The City may also utilize third-party rating agencies in order to assess the overall finanCIal strength of potential depositories, City of San Marcos Investment Policy Page 4