Page 235 - Colleyville FY19 Budget

All personnel working for the firms who will be trading or quoting securities
to the City Council must maintain a current NASD license and be registered
to deal securities in the State of Texas. Each broker/dealer shall provide the
following documentation to the City Council for evaluation:

1. Annual audited financial reports
2. Financial Industry Regulatory Authority (FINRA) registration
3. Central Registration Depository Number (CRD)
4. The City broker/dealer questionnaire (Appendix A) and
5. Investment policy and strategy review certification (Appendix B) on the
firm's letterhead signed by a principal of the firm

If the City contracts with a Registered Investment Advisor to manage its
portfolio, the approved broker/dealer of that firm will be used, subject to
approval by the City council.

Safekeeping

All marketable securities purchased by the City shall be held in third party
safekeeping by an institution designated as primary agent. All securities will
be delivered to the third party institution by seller. Personnel in the third party
institution will verify the correct security was delivered by the seller ("delivery
vs payment"). The third party institution shall issue a safekeeping receipt to
the City listing the specific instrument, rate/yield, maturity, CUSIP, and other
pertinent information. Collateral on deposit type securities which exceed the
FDIC coverage shall be held in a third party safekeeping institution. In the
event a third party safekeeping institution is used, a collateral agreement shall
be executed between the City Council, depository which pledged the collateral,
and the third party custodian of the collateral. The City will retain possession
of all original safekeeping receipts and the receipts will state the security is
pledged to the City. Either the City Manager, Chief Financial Officer or
Accounting Manager must approve release of collateral in writing prior to its
removal from the safekeeping account.

Selection of Financial Institutions

Depositories shall be selected through the City's banking services procurement
process, which shall include a formal request for application. In selecting
depositories, the services available, service costs, and credit-worthiness of
institutions shall be considered, and the Investment Officers, shall conduct a
comprehensive review of prospective depositories' credit characteristics and

230