Laserfiche WebLink
CITY OF REDWOOD CITY <br />INVESTMENT POLICY <br /> draft update: 8/28/17 4 <br />reporting, negligence, and over-reliance on a single employee for investment decisions. <br /> <br />B. Internal controls should include but are not limited to: <br /> <br />1. Segregation of duties (e.g., the purchaser of investments is different than the person <br />recording the transaction) <br />2. Reconciliation of investment report and cash balances <br />3. Authorization of transactions <br /> <br />C. The external City auditor will review the investment program annually in order to provide <br />reasonable assurance that the policy and procedures are complied with. <br /> <br />VIII. Authorized Financial Dealers and Institutions <br /> <br />A. The City Treasurer or designee will obtain financial information from qualified institutions to <br />determine if the institution markets in securities appropriate to the City’s needs, can <br />assign qualified sales representatives, and can provide written agreement to abide by the <br />conditions set forth in the this Policy. <br /> <br />B. The City Treasurer will maintain a list of financial institutions and broker/dealers authorized to <br />provide investment services to the City. An eligible designation does not guarantee that the <br />City will do business with the firm or institution. <br /> <br />C. If the City utilizes an external investment manager/advisor, the manager will perform due <br />diligence and maintain their own list of approved broker/dealers. The manager is authorized to <br />transact with its own approved broker/dealer list on behalf of the City. Such managers must be <br />registered under the Investment Advisers Act of 1940. <br /> <br />D. The following criteria will be used in determining investment providers: <br /> <br />1. Broker/Dealers: The purchase by the City of any investment other than those purchased <br />directly from the issuer shall be purchased from a broker/dealer firm designated as a <br />Primary Government Dealer by the Federal Reserve Bank of New York or a regional <br />dealer that qualifies under SEC Rule 15C3-1 (uniform net capital rule). <br />2. Banks: The City shall purchase securities from banks which meet all of the following criteria: <br />a. Nationally or State chartered banks <br />b. Registered as investment securities dealers with the Securities and Exchange Commission <br />c. Independently rated “A” or higher by two nationally recognized statistical rating <br />organizations <br />3. Investment Bankers, Underwriters and Financial Advisors: The purchase by the City of <br />any investments from these providers in the course of completing a bond transaction <br />must be expressly authorized by the City Council after such a provider discloses their <br />commission, spread or fee in approximate dollar amount. Otherwise, the acquisition of such <br />investments must be procured from the broker/dealers customarily used by the City. <br />4. The Federal Reserve Bank: Direct purchases of Treasury bills, notes and bonds from the <br />U.S. Federal Reserve Banks branches are allowed and are exempt from quality requirements <br />of section VIII of this policy. <br /> <br />6.1.B. - Page 30