Page 430 - FortWorthFY22AdoptedBudget

Section 2256.005(l) of the Act requires that any business organization offering to
engage in an investment transaction with the City must be provided with a copy of
this Investment Policy and Strategy with “business organization” defined as “an
investment pool or investment management firm under contract with an investing
entity to invest or manage the entity’s investment portfolio that has accepted
authority granted by the entity under the contract to exercise investment
discretion in regard to the investing entity’s funds.” That provision also requires
the business organization must provide the City with a written instrument (in a
form acceptable to both parties) executed by a representative of the business
organization that substantially acknowledges that the business organization has:
a. Received and reviewed the City's Investment Policy and Strategy; and
b. Implemented reasonable procedures and controls in an effort to preclude
investment transactions with the City that are not authorized by the City's
Investment Policy and Strategy.

Any material changes to the Investment Policy and Strategy will require re-
certification by all authorized firms.

Security Broker/Dealers
In accordance with the authority delegated by the City Council, the Investment
Committee will at least annually review and adopt a list of broker/dealers who are
authorized to engage in investment transactions with the City. If the City engages
a firm to act as an investment advisor or as an investment manager, the firm
will have the responsibility to ensure all broker/dealers comply with the provisions
of this policy.

Authorized broker/dealers may include "primary" or regional dealers as well as
brokers. No broker/dealer may hold City securities because all transactions must
be settled delivery versus payment (DVP). An entity is disqualified and will not be
authorized to serve as a broker/dealer if the entity is (a) a banking services
depository that acts as safe keeper of City securities in order to perfect the DVP
process or (b) a brokerage subsidiary of a depository identified in (a).

Each broker/dealer must supply the following documents which will be maintained
by the Investment Officer(s) or Investment Advisor.

• annual audited financial reports
• Financial Industry Regulatory Authority (FINRA) registration
• Central Registration Depository Number (CRD)
• proof of Texas State Securities registration
• City broker/dealer questionnaire
• Investment Policy and Strategy review certification

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