Solicitation No. 274-2027-CTYQuestionnaire

Broker/Dealer Qualification Questionnaire for Establishment of the City of Raleigh Approved Broker/Dealer Investment Pool

Issue Date: September 23, 2026

Due Date: October 14, 2026 not later than 4:00 PM ET

Issuing Department: Finance Department - Treasury Services

Direct all inquiries concerning this Questionnaire to:

Laura Broda, Investment & Cash Manager Email: laura.broda@raleighnc.gov

Purpose The City of Raleigh, North Carolina (“City”) is seeking qualifications from broker/dealer firms interested in being considered for inclusion in the City’s approved Broker/Dealer Investment Pool.

The City maintains an investment portfolio of approximately $1.8 billion, consisting primarily of U.S. Treasury and Agency obligations, bank accounts, money market accounts, and investment pools. The City’s investment program is administered in accordance with N.C.G.S. §159-30 and the City’s Investment and Portfolio Policy included as Appendix A.

Through this qualification process, the City intends to establish a pool of no more than five (5) broker/dealers qualified to support the City’s investment activities.

The purpose of this Questionnaire is to obtain sufficient information to evaluate each firm’s qualifications, experience, regulatory standing, financial condition, transaction practices, and ability to operate within the requirements of the City’s Investment and Portfolio Policy and applicable North Carolina law.

Approved Broker/Dealer Pool Period The City intends to establish the approved Broker/Dealer Investment Pool for a period of five (5) years and anticipates conducting a new qualification process at the conclusion of that period.

The City reserves the right to remove a broker/dealer from the approved pool upon thirty

(30) days’ written notice if the firm no longer satisfies the City’s qualification requirements or if performance, regulatory, transaction, or other concerns arise that the City determines warrants removal.

Circumstances that may result in removal may include, but are not limited to:

• The charging of previously undisclosed or unauthorized fees;

• Repeated transaction or processing issues; and

• Failure to adequately monitor or address transaction quality.

Evaluation Process Responses will be reviewed and evaluated by an evaluation committee. A respondent may be asked to participate in a virtual or in-person interview or to provide clarification or supplemental information during the evaluation process. Any request for an interview, clarification, or additional information does not constitute approval for inclusion in the Broker/Dealer Investment Pool.

Firms will be evaluated based on the qualifications and information requested in this Questionnaire. Evaluation considerations may include but are not limited to material litigation involving the firm, regulatory status, completeness of the submitted Questionnaire and required documentation, overall reputation, experience and expertise with public funds, overall financial condition, and transaction failure rate.

The City reserves the right to consider relevant information obtained through references, regulatory sources, public records, or other appropriate sources when evaluating a respondent.

Approval and Participation Broker/dealers approved for inclusion in the City’s Broker/Dealer Investment Pool will be notified in writing. No investment transactions will be conducted with a broker/dealer until the firm has been approved and all required documentation has been completed.

Approval for inclusion in the Broker/Dealer Investment Pool does not guarantee any minimum number, volume, or value of transactions with the City.

All securities shall be delivered against payment to the third-party custodian designated by the City.

Respondents are responsible for all costs associated with preparing and submitting a response to this Questionnaire. The City will not reimburse any costs associated with participation in this qualification process.

Any official addenda or clarification issued by the City concerning this qualification process will be posted to the North Carolina electronic Vendor Portal (eVP) at https://evp.nc.gov/.

https://evp.nc.gov/

BROKER/DEALER QUALIFICATION QUESTIONNAIRE

1. Name of Firm:

2. Headquarters Address:

3. Branch Address:

4. Is your firm a subsidiary of another firm? Y/N If so, what firm?

5. Does your firm participate in the S.I.P.C. insurance program? If not, explain why.

6. Is your firm an inventory dealer? Y/N

7. Is your firm a primary dealer in US Government Securities? Y/N

8. What was your firm’s total volume in US Government Securities trading last year?

a. Firmwide: $ Number of transactions:

b. Branch: $ Number of transactions:

9. Which instruments are traded regularly by the local desk?

( ) Treasury Notes/Bonds ( ) T-bills ( ) Commercial Paper ( ) Bank CDs ( ) Agencies (please specify) ( ) Other (please specify):

10. Primary Account Representative

a. Name:

b. Title:

c. Telephone Number:

d. CRD Number:

11. Secondary Account Representative

a. Name:

b. Title:

c. Telephone Number:

d. CRD Number:

Please attach resumes and FINRA reports for each representative.

12. Are the firm and the account representative registered with the North Carolina State Securities Commission? Y/N If so, for how long?

13. How long has the primary account representative been an institutional governmental securities broker at the firm?

14. How long has the primary account representative been an institutional fixed income broker?

15. What portfolio information do you require from your clients?

16. How many and what percentage of your transactions failed last month? Last year?

17. Please enclose a complete schedule of fees and charges for various transactions.

18. Please identify 3 of your most directly comparable public sector clients:

Entity Contact Name Contact Phone Number Client Since 1.

2.

3.

19. Have any of your clients ever claimed that they sustained a loss on a securities transaction arising from a misunderstanding or misrepresentation of the risk characteristics of the instrument? Y/N If so, explain.

20. Have any of your public sector clients ever reported to your firm, its officers or employees, orally or in writing, that they sustained a loss (in a single year) exceeding 10 percent of original purchase price on any individual security purchased through your firm? Y/N If so, explain.

21. Has your firm ever been subject to a regulatory or state/federal agency investigation for alleged improper, fraudulent, disreputable or unfair activities related to the sale of securities? Y/N Have any of your employees ever been so investigated? Y/N If so, explain.

22. Has a public sector client ever claimed, in writing, that your firm was responsible for investment losses? Y/N If so, explain.

23. Please explain your normal custody and delivery process. Who audits these fiduciary systems?

24. Please briefly describe how you ensure securities offered to clients are in compliance with state statute and local policies.

In order to be considered for placement on the City’s approved Broker/Dealer list, the following information is required:

1. Current Audited Financial Statements

2. Proof of National Association of Securities Dealers (NASD) Certification, unless the institution is a bank.

3. Certification (below) that the business has reviewed and read the City’s Investment and Portfolio

Policy and North Carolina General Statutes related to investments of the City.

CERTIFICATION I hereby certify that I have personally read the City of Raleigh Investment and Portfolio Policy and State statutes pertaining to the investments of the City. I have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City. All sales personnel will be routinely informed of the City’s investment objectives, horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.

SIGNED TITLE

DATE

NOTE: Completion of Questionnaire is only part of the City of Raleigh’s certification process and DOES NOT guarantee that the applicant will be approved to do business with the City.

Please return the completed questionnaire to the City’s Investment & Cash Manager via email by October 14, 2026:

Laura Broda, Investment & Cash Manager laura.broda@raleighnc.gov

Appendix A

CITY OF RALEIGH

NORTH CAROLINA

INVESTMENT AND PORTFOLIO POLICY

SCOPE:

This investment policy applies to activities of the City of Raleigh with regard to investing the financial assets of all funds. This policy pertains to funds invested internally by the City’s staff and contractual arrangements with external managers.

OBJECTIVES:

Funds of the City will be invested in accordance with North Carolina General Statutes Chapter 159-30 and 147-69.2. The City’s investment portfolio shall be managed in a manner to attain a market rate of return throughout budgetary and economic cycles, while preserving and protecting capital in the overall portfolio. Investments shall be made based on statutory constraints and subject to available staffing.

STATUTORY AUTHORIZATION:

In addition to N.C.G.S 159-30 covering all funds of the City, the City is authorized to invest its’ employee benefits funds held in trust, risk reserve funds, and capital reserves as approved by the City Council in accordance with N.C.G.S. 147-69.2 (b)(1)-(6) and (8).

DELEGATION OF AUTHORITY:

The Office of the Treasury (hereby referred to as “Office”) is a division of the Finance Department managed by the Treasury Manager who reports to the Chief Financial Officer. The Office shall develop and maintain written administrative procedures for the operation of the investment program, consistent with these polices. In order to optimize total return through active portfolio management, resources shall be allocated to the cash management program.

PRUDENCE:

The standard of prudence to be applied by the Office shall be the “prudent investor” rule, which states. “Investments shall be made with judgment and care, under circumstances then prevailing, which person of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” The prudent investor rule shall be applied in the context of managing the overall portfolio.

The Office and its designated Investment Officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security’s credit risk or market price changes, provided that these deviations are reported immediately and that appropriate action is taken to control adverse developments.

MONITORING AND ADJUSTING THE PORTFOLIO:

The designated Investment Officer of the Treasury Division will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and will adjust the portfolio accordingly.

INTERNAL CONTROLS:

Controls shall be designed to prevent loss of public funds due to fraud, error, and misrepresentation, unanticipated market changes or imprudent actions. These controls shall be reviewed annually by the independent auditors. Also, all investment accounts are reconciled monthly by the Controller’s Office, separate and apart from the Investment Officer, and the reconciliation results reported to the Treasury Manager and Chief Financial Officer.

PORTFOLIO DIVERSIFICATION:

The City will diversify use of investment instruments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. The following list for portfolio diversification is for non-statutory authorized funds

Diversification by instrument:

• US Treasury Obligations (bills, notes, and bonds)

• US Government Agency securities (for example: GNMA, FNMA, FHLMC, FHLB, and FC discount notes and bullet issues)

• NC Municipal Bonds

• Bankers’ Acceptances

• Commercial Paper

• Non negotiable Certificates of Deposits

• Mutual Fund Certified by the NC Local Government Commission (currently – North Carolina Capital Management Trust)

Diversification by Financial Institution:

• US Treasury Obligations No maximum of the total portfolio

• US Government Agency No maximum of the total portfolio

• NC Municipal Bonds No more than 10% of the total portfolio

• Bankers’ Acceptances No more than 5% of the total portfolio with one institution

• Commercial Paper No more than 5% of the total portfolio with one institution

• NCCMT

No maximum of the total portfolio

Maturity Scheduling:

Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures (payroll, bond payments) as well as considering sizable blocks of anticipated revenues. Maturities in this category shall be timed to comply with the following guidelines:

Under 30 days 10% minimum Under 180 days 25% minimum Under 1 year 50% minimum Under 3 years 75% minimum Under 5 years 100% minimum

Reserve funds invested by external asset managers are not required to meet liquidity needs within the short-term and may have maturities generally consistent with benchmark indices established to monitor performance of the asset managers. External asset portfolios are governed by investment objectives and policies established by the City.

PORTFOLIO DIVERSIFICATION FOR STATUTORY AUTHORIZED FUNDS

The City may invest employee benefits funds held in trust, risk reserve funds, and capital reserves with North Carolina’s State Investment Trust, external managers, a diversified allocation of mutual funds, or any combination of the three. At no time may the portfolio be invested in greater than 65 percent, nor less than 20 percent in equities. The portfolio must also hold at all times at least a 25 percent allocation in bonds.

CREDIT RISK:

The City limits investments to the provisions of G.S. 159-30 and 147-69 and restricts the purchase of securities to the highest possible ratings whenever particular securities are rated.

QUALIFIED INSTITUTIONS:

The City shall maintain a listing of financial institutions, which are approved for investment purposes.

Banks shall provide their most recent Consolidated Report of Condition at the request of the City. At a minimum, the City shall conduct an annual evaluation of each bank’s creditworthiness to determine whether it should be on the “Qualified Institution” listing. Securities dealers not affiliated with a bank shall be requested to be classified as reporting dealers affiliated with the New York Reserve Bank, as primary dealers.

SAFEKEEPING AND COLLATERALIZATION:

The City shall utilize a third party custodial agent for book entry transactions, all of which shall be held in the City’s name. The custodial agent shall be a trust department authorized to do trust work in North Carolina who has an account with the Federal Reserve.

The City shall utilize the pooling method of collateralization and use only bank institutions that are approved by the North Carolina Local Government Commission. The City complies with the provisions of G.S. 159-31 when designating official depositories and verifying that deposits are properly secured.

REPORTING REQUIREMENTS:

The Investment Officer shall generate monthly reports to the Treasury Manager for management purposes. These reports as well as other summary information that includes key information on the details of the investment portfolio and other explanatory descriptions are available to the Chief Financial Officer monthly and the City Manager and/or other parties as desired.