§ 401-57. Ethical and prudent action.

A. 

The Town will establish a system of internal controls over the investment activities of the Town and document such controls in writing.

B. 

The standard of prudence to be used by the Treasurer shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. The Treasurer, acting in accordance with written procedures and this IPS and exercising reasonable due diligence, shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that the purchases and sale of securities are carried out in accordance with the terms of this IPS.

C. 

The Treasurer and Assistant Treasurer shall refrain from any personal activity that may conflict with the proper execution of the investment program or which could impair or appear to impair ability to make impartial investment decisions. Said individuals shall disclose to the Chief Executive Officer any material financial interest in financial institutions that do business with the Town.

D. 

It is the Town's policy that investment officers perform their duties in accordance with the policies and procedures set forth in this manual and according to the prudent person rule: Investments shall be made with judgment and care under prevailing circumstances which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment considering the probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" and shall be applied in the context of managing an overall portfolio. Investment officers acting in good faith and in accordance with these policies and exercising due diligence shall be relieved of personal responsibility for an individual security's performance, provided that deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

E. 

All brokers, dealers and advisors to the Town of Barnstable are required to sign a statement of disclosure as presented in .

Editor's Note: is included at the end of this chapter.