The Treasurer's foremost objective in investing public funds is to ensure that public funds are invested in a manner that provides for maximum security of principal and preservation of capital, while conforming to all Federal, State and local laws, statutes and resolutions governing investment of public funds. The second objective is to maintain sufficient liquidity to enable participants to meet their operating cash flow needs. The third objective is to obtain a market rate of return throughout budgetary and economic cycles within the investment policy risk parameters and cash flow needs.
For the Treasurer to enter into a transaction with any securities broker, dealer or bank investment department or subsidary, that entity must be designated an Authorized Dealer, and placed on the Treasurer’s Authorized Dealer List. For a firm to become authorized it must first demonstrate that it will add value to the Treasurer’s efforts to best manage the cash portfolio, as well as fulfill certain other minimum requirements. To qualify for Authorized Dealer status, a brokerage firm or bank must:
- Be licensed by the State of California
- Be registered with Financial Industry Regulation Authority (FINRA)
- Be registered with the Securities and Exchange Commission (SEC)
- Have been in operation for more than five years
- Have capital adequacy as defined by the New York Federal Reserve Bank
After meeting the above requirements, a sales person may apply to become an Authorized Dealer by sending to the Tuolumne County Treasurer their most recent annual audited financial statements and by filling out the Broker/Dealer Questionnaire. All prospective brokers will participate in an interview with the County Treasurer.