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City of Santa - Annual <br />Statement of Investment Policy Page 9 July 1, 2022 - <br />June 30, 2023 <br />experience working for a primary dealer or five (5) years continuous experience <br />working for a non-primary dealer. FMSA investment staff will only purchase or sell <br />securities from registered representatives that possess an active Series 7 license, an <br />active Series 66 license, or an active Series 63 license, and who submit a FINRA <br />form U4 (employment history) and a current FINRA form U5 Disclosure Statement <br />and have completed the City’s Broker-Dealer questionnaire. <br /> <br />7.5 List of Approved Financial Institutions/Qualified Broker-Dealers <br />Staff shall maintain a list of Financial Institutions/Qualified Broker-Dealers <br />authorized to provide investment services to the City, along with their FINRA Report. <br /> <br />8.0 AUTHORIZED AND SUITABLE INVESTMENTS <br /> <br />8.1 Allowable Investment Instruments – State Law <br />California Government Code Section 53601 establishes allowable investment <br />instruments applicable to all local agencies along with maximum maturities, <br />maximum specified percentages of total portfolio, and minimum quality requirements. <br />Section 53601.1 authorizes local agencies to invest in financial futures or financial <br />option contracts in any of the allowable investment categories enumerated in section <br />53601. <br /> <br />8.2 Authorized Investments <br />City of Santa Ana further restricts permitted investments to those listed below and <br />where applicable, the Investment Committee may reduce maximum maturities, or <br />maximum specified percentages of total portfolio (concentration limits), and may <br />increase minimum quality requirements. Within this scope, the City diversifies its <br />investments by types of investments, maturity dates, concentration limits, and <br />quality requirements. <br /> <br />A. United States Treasury Bills, Notes, and Bonds, for which the full faith and credit <br />of the United States are pledged for payment of principal and interest. Purchases <br />of this category shall not exceed five years to maturity. There is no percentage <br />limit in this category. <br /> <br />B. Obligations issued by a Federal Agency or a United States Government <br />Sponsored Enterprise. Federal Agency Issues include, but are not limited to <br />GNMA (Government National Mortgage Association), FFCB (Federal Farm <br />Credit Bank), FHLB (Federal Home Loan Bank), FHLMC (Federal Home Loan <br />Mortgage Corporation), FNMA (Federal National Mortgage Association), FHA <br />(Federal Housing Administration), and TVA (Tennessee Valley Authority). <br />Although there is no percentage limitation on these issues, purchases of this <br />category shall not exceed five years to maturity and the “prudent investor" rule <br />shall apply for a single agency name as U.S. Government backing is implied <br />rather than guaranteed. <br />