Securities Industry and Financial Markets Association Inc

“Members sifma is a membership organization with the following classes of membership: broker-dealer members and asset manager members each broker-dealer member and asset manager member shall be entitled to vote with respect to the election of directors and other matters as may be submitted at any annual or other meeting of members entitled to vote. Associate members associate members shall not be entitled to vote with respect to the election of directors and other matters as may be submitted at any annual or other meeting of members entitled to vote, and shall not be eligible to serve as directors of the association.”

“Form 990 review process the accounting department of the organization prepares the form 990 based on audited financial information. The draft form 990 is then reviewed by management and an external independent accounting firm. The audit and finance committee will review the final draft signed off by the external independent tax accountant. This review will be noted as an agenda item at an audit and finance committee meeting and will be duly noted in the minutes. The form 990 will be provided to all voting members of the board of trustees prior to submission to the irs.”

“Conflict of interest policy monitoring & enforcement any employee in a position where his or her objectivity may be questioned because of an individual interest or family or personal relationship is required to notify the general counsel. Similarly, any employee aware of any transaction or relationship that could reasonably be expected to give rise to a personal conflict of interest is required to discuss the matter promptly with the general counsel. In addition, once every year, directors, officers, key employees, and all the employees of sifma are required to review a copy of the conflict of interest policy and to acknowledge in writing that he or she is compliant.”

“Process for determining compensation the executive committee and the board acting as compensation committee hire consultants to review comparable packages for any new incoming ceo and officers. The consultant presents data for comparable positions both locally and nationally and the board's executive committee makes the final decision for the salary package. Currently, the ceo has an employment contract which was approved by the executive committee and the board, governing annual salary increase and any bonus payments. For the remaining senior officers, the annual salary increase and bonus payments are determined by the annual evaluation process which must be approved by the board's compensation committee.”

“Availability of documents any request for governing documents, conflict of interest policy, and financial statements will be provided upon request at management's discretion.”

“DUES REDUCTION EXPLANATION FOR FISCAL YEAR 2017, THE BOARD AUTHORIZED A ONE-TIME MEMBER DUES CREDIT FOR BROKER DEALER MEMBERS, AGGREGATING TO $15 MILLION. THE REVENUE SHORTFALL WAS FUNDED AS A DRAWDOWN OF THE ASSOCIATION'S FINANCIAL RESERVE. Part I, Line 6 VOLUNTEERS THE NUMBER OF VOLUNTEERS WAS DERIVED FROM SIFMA COMMITTEE PARTICIPANTS PER THE MEMBERSHIP DATABASE.”

“Organization mission continued we represent the broker-dealers, banks and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the u.s., serving clients with over $18.5 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans.”

“Statement of program service accomplishments: program services continued cybersecurity sifma is actively engaged in coordinating the effort to support a safe, secure information infrastructure, which provides security of customer information and efficient, reliable execution of transactions. We continually work with industry and government leaders to identify and communicate cybersecurity best practices for firms of all sizes and capabilities, and educate the industry on evolving threats and appropriate responses. Personal data aggregation the financial industry is committed to ensuring the safety of the clients we serve at every turn. Sifma is coordinating a broad-based industry effort to protect a customers financial information, with a focus on investors' right to access their own data. We are creating a set of industry-wide principles for protecting, sharing and aggregating customer financial information. We will look at standard contracts and other ways that we may promote transparency, efficiency and trust in the marketplace. Consolidated audit trail (cat) sifma advocates for a secure cat system that expedites the retirement of duplicative systems, while promoting an inclusive governance structure and equitable funding model. As development continues to support this major initiative, sifma is engaged with the sec, the sros and thesys on data security and implementation issues. Market structure equity market policies must not and cannot be transposed to fixed income, a group of unique marketplaces where change is happening in both its infrastructure and market participant profile. As new regulations are contemplated, they must keep pace with an increasingly connected and technology-driven marketplace that provides access to capital in an extremely efficient manner (in 2016 alone, over 1,300 companies raised $1.5 trillion in the corporate bond markets to fund their operations and growth). Sifma is working to shed light on the uniqueness, importance and diversity of the treasury market as rulemakings are considered; increase awareness of developments in electronic bond trading for corporate and municipal securities; and promote liquidity and transparency with market-based solutions. Best interest standard sifma strongly supports enhancing investor protections by establishing a heightened and more stringent broker-dealer best interest standard. The sec should take the lead in coordination with the dol to develop such a principles-based standard of conduct for the benefit of investors. Tax policy and reform sifma supports tax reform that enhances economic opportunities for individual americans, promotes savings and encourages investment, and lowers the tax rate for american businesses that compete in a global marketplace where the u.s. Tax rate is an outlier and the u.s. International tax system is out of step with our global competitors. Sifma supports movement to a territorial tax system that recognizes the unique characteristics of the financial services industry, a transition to such a system that is fair and equitable for u.s. Financial services companies and investors, and tax rules for inbound investment that encourages foreign investment in the u.s. And does not discriminate against non-u.s. Financial services companies seeking to compete in u.s. Markets. Infrastructure finance at sifma, we recommend fully preserving the tax exemption for municipal bonds; expanding public-private partnerships (p3s), including the use of private activity bonds (pabs); promoting private investment in public projects; applying design-build strategies; and reviving direct-pay bonds. In order to bring our infrastructure into the 21st century, we need to invest more without imposing burdens that can weigh down our economy.”

“Statement of program service accomplishments: program services continued advocacy sifma, on behalf of the financial services industry, engages with policymakers and regulators on a state, federal and global level through comment letters, testimony, studies and more. Sifmas goal is to ensure regulation is effective, balanced and consistent with its intended purpose, appropriately coordinated with other regulators and regulatory regimes, and avoids constraining capital formation and credit availability, or otherwise impeding the functioning of the markets and the individuals they serve. International issues the environment for capital formation and investment can be enhanced by opening global markets, strengthening investment and regulatory climates in all markets, and promoting consistent regulation and legislation globally. Working in close coordination with sifmas global affiliate, the global financial markets association (gfma), sifma advocates for consistent and coordinated regulation globally ranging from, for example, prudential requirements and the regulation of otc derivatives to the facilitation of cross-border implementation of mifid ii's research provisions. Sifma also believes free- and fair-trade agreements promote u.s. Economic growth and job creation by expanding opportunities for financial services firms to compete in overseas markets and better serve their clients. Trade agreements are most beneficial to the real economy when they are comprehensive, so sifma continues to work with policymakers to ensure financial services are fully included in them. We strongly support a modernized north american free trade agreement (nafta); continue to advocate for a level playing field between domestic and foreign financial services firms in china; and coordinate closely with gfma to help the uk and eu to deliver brexit in a way that protects global financial stability. Shortened settlement cycle following a multi-year broad-based industry initiative, on september 5, 2017 the financial services industry successfully transitioned to a shortened standard settlement time frame of trade date plus two days (t+2) for in-scope securities. A fundamental change to settlement practices and the most significant operation change in two decades, the new two-day settlement cycle reduces risk and enhances u.s. Market structure while improving market safety and providing efficiency for investors.”

“Statement of program service accomplishments: program services continued in 2017, sifma delivered more than 100 in-person and virtual programs for nearly 17,000 industry professionals. In addition, countless roundtables and workshops provided thought leadership, critical industry and policy analysis, continuing education and professional development. Sifma annual meeting at sifmas annual meeting, financial market professionals gathered with policymakers and regulators to explore how todays business and regulatory environment is impacting the ability of the capital markets to spur economic growth. Sifma compliance & legal society annual seminar sifmas c&l annual seminar gathered almost 2,000 compliance and legal professionals and regulators, including more than 65 breakout sessions from more than 100 organizations. These experts covered both core and emerging topics, and provided an opportunity for industry professionals and regulators alike to share their respective expertise and insight with the goal of preserving our capital markets as the most fair, transparent and ethical in the world. Private client conference sifmas annual private client conference has served as north americas leading event for financial professionals who service the individual investor. The event brings together the top industry leaders to discuss relevant and pressing topics affecting our industry today, while delivering practical strategies to enhance the client experience, help advisors succeed, and operate more effectively. Operations conference & exhibition the trusted resource for broker-dealers and asset managers on the evolution of operations and regulation since 1973, the annual operations conference & exhibition gathered industry leaders to discuss insights and strategies addressing industry challenges including the department of labors fiduciary rule, t+2 implementation, regulatory changes, operational risk, cybersecurity, blockchain, the consolidated audit trail and more. The securities industry institute the securities industry institute (r)(sii) is an executive education program uniquely tailored to financial services professionals, delivered through sifmas partnership with the wharton school of business at the university of pennsylvania. Held on the wharton campus, participants meet for one week each march to complete required coursework over three consecutive years. High-performance talent is nurtured with forward-thinking, relevant curriculum that delivers long-term impact; the highest standards of integrity, ethics and professional excellence; and tremendous networking opportunities. Graduates of sii have advanced to increasingly higher levels of management and leadership within their firms and the industry.”

“Statement of program service accomplishments: other program services continued serving as a source of market information, including statistics on many facets of the market place and publishing research reports, trade newsletters and other periodicals and books.”

“Reconciliation of net assets postretirement-related changes other than net periodic postretirement benefit cost ($586,283) membership dues reserve $23,000 ---------- total other changes: ($563,283) ==========”