§ 1200.14 What must the Tribal Management Plan contain? The Tribal Management Plan required by § 1200.13 must include each of the following: ( a ) Tribal investment goals and the strategy for achieving them.
( b ) A description of the protection against the substantial loss of principal, as set forth in § 1200.16.
( c ) A copy of the tribe's ordinances and procedures for managing or overseeing the management of the funds to be withdrawn. These must include adequate protections against fraud, abuse, and violations of the management plan.
( d ) A description of the tribe's previous experience managing or overseeing the management of invested funds. This should include factual data of past performance of tribally-managed funds (i.e., audited reports) and the identity and qualifications of the tribe's investment officer.
( e ) A description of the capability of all of the individuals or investment institutions that will be involved in managing and investing the funds for the tribe. Provide copies of State or Federal security applications for account executive(s). ( 1 ) Investment entities named must submit: ( i ) Ownership information (including Central Registry Depository (CRD) numbers);
( ii ) Asset size and capitalization;
( iii ) Assets under management;
( iv ) Performance statistics on managed accounts for the past 5 years; and
( v ) Any adverse actions by licensing and/or regulatory bodies within the past 5 years.
( 2 ) In addition, we may ask about: ( i ) Soft dollar arrangements;
( ii ) Affiliation with broker dealers, banks, insurance and/or investment companies;
( iii ) Research done in house;
( iv ) Recent changes in active portfolio managers; and
( v ) Any other information necessary to make an adequate evaluation of the proposed plan.
( f ) A description of how the plan will ensure that the fund manager will comply with any conditions established in judgment fund plans or settlement acts.
( g ) Proof of liability insurance of the investment firm.
( h ) Proof of liability insurance that protects against fraud for those Tribal Council members with authority to disburse funds. In many tribes the chairperson, and the comptroller and/or the tribal treasurer, for example, would be the positions having this authority.
( i ) A plan for custodianship of investment securities that includes: ( 1 ) Name of persons in the tribe who can direct the custodian;
( 2 ) Name of the custodian;
( 3 ) Copy of intended custodian agreement;
( 4 ) Size of custodian operation;
( 5 ) Disclosure of any security lending provisions; and
( 6 ) Insurance coverage.
( j ) A tribal council agreement to provide an annual audit and report on performance of withdrawn funds to the tribal membership. The agreement must include a description of the steps (including audit performance and reporting) the tribe will take to ensure its membership that the tribe is continuing to comply with the terms of the plan submitted and approved pursuant to judgment fund limitations (if any) and/or the terms of the Act.
( k ) The proposed date for transfer of funds.
( l ) A statement as to whether the tribe chooses to receive the withdrawal as a cash balance transfer, as a transfer of marketable investments that we own for the tribe, or as a combination of the two. ( 1 ) A cash balance transfer may require us to sell bonds, notes, or other investments that we purchased when investing the tribe's monies.
( 2 ) We cannot transfer non-marketable securities to a tribe. We can only purchase and hold them and must sell them back to the U.S. Treasury.
( 3 ) If we sell a tribe's security at a loss (i.e., when market value is less than book value or carrying value) we will first notify the tribe. The tribe must instruct us to proceed with the sale and must agree not to hold us responsible for the loss before we will make the sale.
( 4 ) If the tribe asks us to transfer marketable securities, upon proper instructions from the new tribal custodian, we will order our custodian to physically transfer the proper security to the new custodian on the agreed upon date.
( m ) Agreement that judgment award funds will have segregated accounts.
( n ) A description of the procedures for amending or revising the plan.
[61 FR 67932, Dec. 26, 1996, as amended at 71 FR 15339, Mar. 28, 2006]