Utah Admin. Code R628-15-10 - Post Certification Requirements
A. Certified investment advisers shall notify
the Division of any changes to any items or information contained in the
original application within 30 calendar days of the change. The notification
shall provide copies, where necessary, of relevant documents.
B. Certified investment advisers shall
maintain a current application on Form 628-15 with the Division throughout the
term of any agreement or contract with any public treasurer. Federal covered
advisers shall maintain registration as an investment adviser under the
Investment Advisers Act of 1940 throughout the term of any agreement or
contract with any public treasurer.
C. Certified investment advisers shall
provide and maintain written evidence of insurance coverage as described in
R628-15-6(B).
D. Certified investment advisers shall
provide to the public treasurer the SEC Form ADV Part II prior to contract
execution.
E. Certified investment
advisers shall file annual audited financial statements with all public
treasurers with whom they are doing business.
F. Certified investment advisers shall fully
disclose all conflicts of interest and all economic interests in dealers and
other affiliates, consultants and experts used by the Investment adviser in
providing investment advisory services.
G. Certified investment advisers shall act
with the degree of care, skill, prudence, and diligence that a person having
special skills or expertise acting in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a like character and with
like aims.
H. Certified investment
advisers shall use their approved list of broker-dealers or certified dealers
in the best interest of the public treasurer's account for which they are
transacting business when allocating transactions to broker-dealers.
I. Any value from transacting on a public
treasurer's account accrued to the investment adviser, including soft dollar
credits, for allocating transactions to broker-dealers must be paid back to the
public treasurer's account. In addition, Certified investment advisers shall
fully disclose to the public treasurer any self-dealing with subsidiaries,
affiliates or partners of the Investment adviser and any soft dollar benefits
to the Investment adviser for transactions placed on behalf of the public
treasurer.
J. Certified investment
advisers shall fully and completely disclose to all public treasurers with whom
they do business the basis for calculation of fees, whether and how fees may be
adjusted during the term of any agreement, and any other costs chargeable to
the account. If performance-based fees are proposed, the disclosure shall
include a clear explanation of the amount of the fee at specific levels of
performance and how prior losses are handled in calculation of the
performance-based fee.
K. Certified
investment advisers shall not assign any contract or agreement with a public
treasurer without the written consent of the public treasurer.
L. Certified investment advisers shall
provide immediate written notification to any public treasurer to whom advisory
services are provided and to the Division upon conviction of any crime
involving breach of trust or fiduciary duty or securities law
violations.
M. Not less than once
each calendar quarter and as often as requested by the public treasurer,
Certified investment advisers shall timely deliver to the public treasurer:
(1) copies of all trade confirmations for
transactions in the account;
(2) a
summary of all transactions completed during the reporting period;
(3) a listing of all securities in the
portfolio at the end of each reporting period, the market value and cost of
each security, and the credit rating of each security;
(4) performance reports for each reporting
period showing the total return on the portfolio as well as the realized rate
of return, when applicable, and the net return after calculation of all fees
and charges permitted by the agreement; and
(5) a statistical analysis showing the
portfolio's weighted average maturity and duration, if applicable, as of the
end of each reporting period.
Notes
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