PERSONAL TRADING CODE OF ETHICS
FOR ACCESS PERSONS
AMERICAN EXPRESS FINANCIAL
CORPORATION (AEFC) AND ITS AFFILIATES
January 2, 2004
Personal Trading Code of Ethics and Procedures
American Express Financial Corporation and its Affiliates
Topic Page
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Personal Trading Code of Ethics Framework
Applicability 3
General Personal Trading Code of Ethics 3-4
Basis For Rules 5
Fiduciary Principles 5
Definitions 6
Reporting Requirements for Access Persons
Security Activities Which Must Be Reported 7
How To Comply 7
Inclusions and Exclusions to Limited Choice 8
Exceptions to Limited Choice 8
Additional Rules & Requirements for Access Persons
Preclearance Of Security Trades 9
Exceptions 10
Preclearance Form 11
Reporting & Preclearance Chart 12-14
Private Placement Preclearance 15
60-Day Holding Period for Mutual Funds 16
Additional Reporting Requirements
Initial Holdings Disclosure 17
Annual Certification and Annual Holdings Disclosure 17
Quarterly Reporting 18
Investment Clubs 19
Giving Securities 19
Sanctions 20
Unusual Trading Activity 20
Incremental Restrictions and Requirements for Investment Personnel
60-Day Holding Period 21-22
Research Analysts: Additional Rules 23-24
Incremental Portfolio Manager Restriction
7-Day Blackout Period 25
Preclearance of Proprietary Mutual Funds 26
American Express' Insider Trading Policy 27-29
Forms & Completion Instructions
Brokerage and Mutual Fund Account and Initial Personal Holdings
Disclosure Instruction & Certification Forms 30-32
Brokerage Account Notification Instructions & Form 33-34
Limited Choice Exception Request From 35
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Personal Trading Code of Ethics Framework
Applicability
These rules apply to securities trading in which you have a beneficial
ownership. This includes accounts held in the name of any of the following
individuals:
o You
o Your spouse/partner
o Financially dependent members of your household
In addition, these rules apply to the following types of accounts if any of the
individuals listed above:
o Is a trustee or custodian for an account (e.g., for a child or parent)
o Exercises discretion over an account via a power of attorney arrangement or
as an executor of an estate after death
o Owns an IRA
o Participates in an investment club
o Provide investment advice by reason of any contract, understanding,
relationship, agreement or other arrangement substantially equivalent to
direct or indirect ownership. (If you give investment advice or effect
securities trading for others, notify Personal Trade Compliance.)
General Personal Trading Code of Ethics
These general rules, along with the procedures contained in the rest of this
document, must always be followed:
1. No misuse of inside information (refer to Insider Trading Policy on page
27).
2. No misuse of material non-public information relating to Mutual Funds,
including information relating to portfolio contents or pricing.
3. No purchasing of public offerings (initial or secondary issues)
4. No front-running. This involves an individual taking advantage of
non-public information about imminent trading activity in our mutual funds
or other advised accounts by trading in a security before the fund or
advised account does.
5. No preferential treatment from other brokerage firms due to the purchaser's
employment by American Express or its subsidiaries.
6. No direct trades with broker/dealers' trading desks.
7. No non-retail relationships with broker/dealers.
8. No use of American Express' name (or the name of any of its subsidiaries)
to obtain a better price from a broker who is a market maker in the
security being traded.
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9. No speculative trading of American Express stock, which is characterized by
transactions in "put" or "call" options, or short sales or similar
derivative transactions. As part of the American Express Company Code of
Conduct, the Company discourages short-term trading in its own stock.
10. No stopping stock. This is defined as a guarantee by a specialist that an
order placed by a Floor Broker will be executed at the best bid or offer
price then in the Specialist's book unless it can be executed at a better
price within a specified period of time.
11. If you decide what security to sell to meet a margin call you must request
preclearance for that security.
12. All traders, trading assistants, fixed income sector team leaders and
sector team managers who trade in OTC securities must trade through
American Express Brokerage.
13. No trading of brokerage firm stocks by all traders and trading assistants
fixed income sector team leaders and sector team managers.
14. No market timing (short-term trading) in shares of Mutual Funds. This
prohibition applies across all accounts in which you have a beneficial
interest (so that you cannot buy shares of a Mutual Fund in one account and
sell them from another account in market timing transactions), including
the American Express Incentive Savings Plan and Mutual Funds underlying a
variable annuity and variable life insurance contracts.
After March 31, 2004, this prohibition also applies to investments through
pooled investment vehicles, such as hedge funds, that may engage in market
timing. Beginning March 31, 2004, you are responsible for ensuring that no
pooled investment vehicle in which you invest engages in market timing.
If you invest in a hedge fund whose offering document does not state
whether the hedge fund engages in market timing of Mutual Funds, you should
obtain written assurance from the hedge fund that it does not engage in
market timing of Mutual Funds.
15. There is a 60-day holding period for Mutual Funds as described on page 16.
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Basis for Rules
The rules and procedures that apply to personal trading for access persons are
derived from:
Investment Company Institute (ICI) Guidelines to Industry on Personal
Investing
Securities and investment laws, including:
o Securities Act of 1933
o Securities Exchange Act of 1934
o Investment Company Act of 1940
o Investment Advisers Act of 1940
o Insider Trading and Securities Fraud Enforcement Act of 1988
Rules, regulations and corporate policies, including:
o Securities and Exchange Commission (SEC)
o National Association of Securities Dealers (NASD)
o American Express Financial Corporation (AEFC) Insider Trading
Policy
o American Express Company Code of Conduct
Fiduciary Principles
The following general fiduciary principles shall govern personal trading
activities and the interpretation and administration of these rules:
o The interests of Fund shareholders and other advised and sub-advised
account clients must be placed first at all times
o All personal trading transactions must be conducted consistently with
these rules and in such a manner as to avoid any abuse of an
individual's position of trust and responsibility.
o You should never use your position with the company, or information
acquired during your employment, in your personal trading in a manner
that may create a conflict - or the appearance of a conflict - between
your personal interests and the interest of the company or its
customers and clients. If such a conflict or potential conflict
arises, you must report it immediately to Personal Trade Compliance.
o Company personnel should not take inappropriate advantage of their
positions.
These rules do not attempt to identify all possible conflicts of interest, and
literal compliance with each of its specific provisions will not shield company
personnel from liability for personal trading or other conduct that is designed
to circumvent its restrictions and/or violates a fiduciary duty to Fund
shareholders and other advised and sub-advised account clients.
You may not engage indirectly in conduct that is directly prohibited by these
rules.
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Definitions
Personal Trading Code of Ethics for access persons apply to three groups of
personnel. Each successive group is a subset of the previous group, and is
subject to incrementally restrictive procedures. Therefore: Investment Personnel
are subject to Access Person rules, plus the additional specified rules.
Portfolio Managers are subject to Investment Personnel and Access Person rules,
plus additional specified rules.
Access Persons are individuals who meet one or more of the following criteria:
1. Have access to information regarding impending purchases or sales of
portfolio securities for any account owned or managed.
2. Obtain such information within 10 days after the trade.
3. Have access to information on the holdings of mutual funds advised by or
sub-advised by AEFC or a subsidiary of AEFC within 30 days of the date of
the holdings.
4. Have access to the Investment Department's investment research and
recommendations.
5. Work in the Investment Department or Asset Management Group, including but
not limited to the following locations, Minneapolis, Boston, Cambridge, San
Diego, Los Angeles, New York, New Jersey, London (excluding Threadneedle
employees*), Singapore, Sydney, and Tokyo.
6. Participate in the investment decision-making process.
7. Have a specific role which compels access person status, for example:
- serving as a Board member of an AEFC investment company
- providing direct, ongoing audit, compliance, or legal support to money
management businesses.
* Threadneedle personnel are subject to a separate personal trading code of
ethics and are not subject to this one.
Investment Personnel are research analysts, traders and portfolio managers,
fixed income sector team leaders or sector team managers, Vice Presidents of
investment administration, Senior Vice President - Fixed Income and the Chief
Investment Officer.
Portfolio Managers are individuals with direct responsibility and authority over
investment decisions affecting any account owned or managed. This includes
associate portfolio managers.
Mutual Funds are U.S. registered open-end investment companies the shares of
which are redeemable on any business day at the net asset value, including
Mutual Funds such as American Express Variable Portfolio Funds (AXP VP Funds)
that underlie variable annuity and variable life insurance contracts. The
American Express Funds, AXP VP Funds, IDS Life Series Funds and IDS Life
Variable Annuity Funds A and B are Proprietary Mutual Funds. All other Mutual
Funds are Non-proprietary Mutual Funds.
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Reporting Requirements for Access Persons
Securities Activities Which Must Be Reported
All personal securities activities (i.e., stocks, options, bonds, Mutual Fund
shares, etc.), whether bought or sold, must be reported, with the exception of
such things as money market Mutual Funds and certificates of deposit. A chart
indicating which transactions must be reported is located on pages 12-14. You
must report activity involving securities trading in which you have a beneficial
ownership. This includes accounts held in the name of any of the following
individuals:
o You
o Your spouse/partner
o Financially dependent members of your household
In addition, these rules apply to the following types of accounts if any of the
individuals listed above:
o Is a trustee or custodian for an account (e.g., for a child or parent)
o Exercises discretion over an account via a power of attorney arrangement,
as an executor of an estate after death
o Owns an IRA
o Participates in an investment club
o Provide investment advice by reason of any contract, understanding,
relationship, agreement or other arrangement substantially equivalent to
direct or indirect ownership. (If you give investment advice or effect
securities trading for others, notify Personal Trade Compliance.)
Failure to disclose all brokerage accounts may result in a sanction, which
includes possible termination.
How To Comply
Unless you have an exception approved by Personal Trade Compliance, your
personal trading must be conducted through one of three limited choice brokers -
American Express Brokerage, Schwab, or Merrill Lynch. Personal Trade Compliance
has arranged to receive automated data feeds of transaction activity from
American Express Brokerage, Schwab, and Merrill Lynch accounts.
You must report any new accounts opened by immediately completing the following
steps:
o Complete the Brokerage Account Notification Form on page 34 and return it
to Personal Trade Compliance, H26/1875.
o Notify your broker of your association with American Express. You are
responsible for notifying your broker that you work for American Express
Financial Advisors, a broker/dealer, and ensuring that Personal Trade
Compliance is provided with duplicate statements and confirmations for your
account(s).
-7-
What types of investments must be transferred to or held at one of the limited
choice firms?
o Stocks -- common (including American Express), preferred, convertible
preferred, short sales, rights or warrants
o Corporate bonds (including convertibles and foreigns)
o Derivatives, including futures, options and index securities
o Limited partnerships (if purchased through a brokerage account)
o Unit Investment Trusts (UITs), American Depository Receipts (ADRs) and
Real Estate Investment Trusts (REITs), Exchange Traded Funds and
closed-end funds.
o Managed or wrap accounts in which individual securities are held and
the investor has the ability to exercise trading discretion
o Proprietary Mutual Funds must be held only through American Express
brokerage, Incentive Savings Plan, "at fund" (directly with the Mutual
Fund), or underlying a variable annuity or variable life insurance
contract from IDS Life Insurance Company or another affiliate of AEFC.
What investments are not subject to this limited choice policy?
Some investments are not subject to this policy, and therefore, do not need to
be transferred. You may continue to hold the following investments in brokerage
accounts at other firms:
o Non-proprietary Mutual Funds
o American Express Stock Purchase Plan (purchased through payroll
deduction)
o Annuities
o Certificates of Deposit, savings certificates, checking and savings
accounts and money market accounts
o Commercial paper
o Dividend reinvestment plans
o Employer sponsored incentive savings plans
o Government bonds (U.S. Treasury notes, bills, bonds, STRIPS, state and
local municipals, savings bonds)
o Church bonds
o Private placements
o Managed or wrap accounts that do not include individual securities
Exceptions to Limited Choice
Exceptions to the limited choice policy of conducting personal trading through
one of the three authorized brokers - American Express Brokerage, Schwab, or
Merrill Lynch - will be rare. If you believe your situation warrants an
exception, print and complete the Exception Request Form found on page 35.
If you are granted an exception you are responsible for ensuring that Personal
Trade Compliance receives duplicate confirmations and statements.
An exception to the limited choice policy does not eliminate the need to comply
with the other Personal Trading Code of Ethics.
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Additional Rules & Requirements for Access Persons
Preclearance of Security Trades
You must obtain prior approval - known as preclearance - when trading in any of
the investment vehicles indicated on the "Securities Reporting and Preclearance
Chart" (see pages 12-14). When requesting preclearance, you must follow these
procedures:
Requesting preclearance - On the day you intend to purchase or sell a security
requiring preclearance, complete Section A of the Preclearance Form (see form on
page 11) and fax it to the equity trading desk on H17 at (612) 671-5101 between
8 AM and 3 PM. Central Time.
Approval process - Before approving the transaction, the trading desk will
verify that there are no managed or owned accounts trading in the security. For
example, the trading desk verifies there is no same day or opposite way/previous
day trading in that security. The trade desk will complete Section B of the
preclearance form and fax it back to you. Preclearance is only effective for the
day it is given.
After Hours Trading (On-line) - When trading through an on line account you have
until midnight the day you are granted preclearance to enter your trade. When
routing your preclearance form to Personal Trade Compliance, please attach a
copy of your electronic confirmation from your broker showing that the trade was
entered on the day preclearance was given. The trade then needs to be executed
no later than the next business day. We will not consider the trade in good form
unless both documents are submitted.
Execution of your trade - Complete Section C of the preclearance form upon
execution of the trade and route it to Personal Trade Compliance immediately.
The entire approval section must be complete in order for the preclearance form
to be accepted in good order. If any portion of the form is incomplete, it may
result in a preclearance violation. Even if the trade is not executed, you are
still required to send the form to Personal Trade Compliance.
Local approval process necessary for individuals in the Los Angeles office - An
additional level of preclearance approval is required in Los Angeles before
executing a trade because of unique considerations with the CDO/CLO business.
See your local Compliance Officer for more information.
Offices Using Team Management Approach
For a special rule applying to all employees in the satellite offices using a
team-based management approach, see page 24 under "Offices Using Team Management
Approach".
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Exceptions
Exceptions may be granted if the individual has tried to preclear a trade at
least three times in any five consecutive day period. In order to be granted
this exception, you must request approval by sending your request via Lotus
Notes addressed to: Personal Trading. Provide a written explanation of the
circumstances, including:
o The type of trade
o The name of the security
o The number of shares
o Your position, such as trader, analyst, portfolio manager, other.
o The three most recent dates you have tried to preclear
You will receive a written response to your request within 24 hours.
If you receive an exception, the exception is only for the preclearance portion
of your trade. You are still responsible for ensuring compliance with the other
rules in the Personal Trading Code of Ethics, including the 60-day holding
period and the 7-day black out period rules as they apply to you.
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Request for Personal Trading Preclearance
A. Request for Trade Approval (completed by employee):
Employee's First Middle
Last Name: _____________________ Name: __________________ Initial: ________
Extension: _____________________ Fax Number: ______________________________
Brokerage Firm: Approved
[ ] AXP Brokerage [ ] Merrill Lynch [ ] Schwab [ ] Exception: _______
(specify firm name)
Account Number: ____________________________________
Type of Trade: [ ] Buy [ ] Sell [ ] Short Sale
Ticker: ____________________________________
B. Trade Authorization (completed by trade desk - H17)
Equity/option authorized? [ ] Yes [ ] No
Equity/option traded same day? [ ] Yes [ ] No
Equity traded previous day opposite way? [ ] Yes [ ] No
Option traded previous day opposite way? [ ] Yes [ ] No
Fixed income approved by:
Request Approved? [ ] Yes [ ] No
Approved by: _____________________ Date/Time (EST): _________________
Log Number: ______________________
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C. Trade Execution (completed by employee)
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[ ] Trade Executed [ ] Trade Not Executed
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Quantity: ________ Price: ____________
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Three Step Preclearance Request Process
1. EMPLOYEE: Complete Section A - Request for Trade Approval and fax
Request for Personal Trading Preclearance to the Equity Trade Desk at
(612) 671-5101 between 8 AM and 3 PM Central Standard Time.
2. EQUITY TRADE DESK: Complete Section B - Trade Authorization and fax
Request for Personal Trading Preclearance back to employee.
3. EMPLOYEE: Complete Section C - Trade Execution and fax (612) 678-0150
or route (H26/1875) a copy of the completed Request for Personal
Trading Preclearance to the Personal Trade Team immediately, regardless
of whether or not the trade is executed.
Please refer to pages 9-10 of the Personal Trading Code of Ethics and
Procedures for Access Persons for questions regarding preclearance
requirements.
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Reporting & Preclearance Chart Reporting Preclearance Required?
required for
these
transactions?
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American Depository Receipts/Shares/Units Yes Yes (against underlying security and
(ADRs/ADSs/ADUs) ADR/ADU)
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Annuities - fixed No No
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Annuities - variable Yes No
Except for portfolio managers, fixed
income sector team leaders or sector
team managers, Senior Vice President
of Fixed Income Investments and
Chief Investment Officer.
(see page 26)
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American Express Stock (other than shares purchased in Yes The AXP Corporate secretary requires
Incentive Savings Plan or stock purchase plan - see *) all individuals in grade bands 50
and above to preclear their trades
through the Secretary's office. The
Corporate Secretary's office number
is: 201-209-5852
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(Options on) American Express Stock (i.e., puts and
calls) Prohibited Prohibited
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Bonds and other debt instruments: corporate Yes No
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Bonds and other debt instruments: convertible Yes Yes (against both underlying stock &
convertible debt)
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Bonds and other debt instruments: Government (Treasury No No
notes, bills, bonds or STRIPS) and Church Bonds
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Bonds and other debt instruments: U.S. Guaranteed or of Yes No
federally sponsored enterprises (FHLMC, FNMA, GNMA, etc.)
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Bonds and other debt instruments: closely held Yes No
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Certificates of Deposit, Savings Certificates, checking No No
and savings accounts and money market accounts
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Closed-end funds Yes Yes
Including registered fund of hedge funds.
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Commercial Paper No No
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Derivatives (DECS, ELKS, PRIDES, etc.) Yes Yes (against both underlying stock &
derivative)
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Dividend Reinvestment Plans Yes, on No
quarterly
reporting form
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Futures: commodity, currency, financial, or stock index Yes No
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Futures: single stock Yes Yes
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Index Securities - (S&P 500, SPDRS/SPY, Diamonds/DIA, Yes Yes
Cubes/QQQ, etc.) Exchange Traded Funds, Holders Trusts (except broadly based Index
securities, defined as 20 or more
names)
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Life Insurance (variable) Yes No
Except for portfolio managers, fixed
income sector team leaders or sector
team managers, Senior Vice President
of Fixed Income Investments and
Chief Investment Officer.
(see page 26)
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Limited Partnerships Yes Yes
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Limit order Yes Yes, must renew daily
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Managed or wrap accounts:
If individual securities held and investor has ability Yes Yes
to exercise trading discretion Yes No
If individual securities held and investor does not have No No
ability to exercise trading discretion
If individual securities not held
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Mutual Funds (other than money market funds) Yes No
Except for portfolio managers, fixed
income sector team leaders or sector
team managers, Senior Vice President
of Fixed Income Investments and
Chief Investment Officer.
(see page 26)
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Options on stocks Yes Yes (except to close position in the
last 5 business days before
expiration)
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Options: exercise of option to buy or sell underlying Yes No
stock
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Options on futures and indices (currency, financial, or Yes No
stock index)
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Options on single stock futures Yes Yes
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REITS (Real Estate Investment Trusts) Yes Yes
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Private Placements Yes, on Yes
quarterly
reporting form
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Stocks: common or preferred Yes Yes
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Stocks: convertible preferred Yes Yes (both underlying stock and
convertible preferred)
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Stocks: short sales (short sales prohibited on Yes Yes
American Express stock)
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Stocks (owned) - exchanges, swaps, mergers, tender offers Yes No
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Stocks - public offerings (initial OR secondary) Prohibited Prohibited
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Stocks - Rights or warrants acquired separately Yes Yes
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Stocks - employer-sponsored purchase plan (spouse or Yes, on No
partner) quarterly
reporting form
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Unit Investment Trusts (UITs) Yes No
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* - American Express Incentive Savings Plan and Stock Purchase Plan activities
are not subject to reporting or preclearing. In addition, the granting, vesting
and exercise of incentive awards of American Express stock options, restricted
stock and portfolio grants and the sale through American Express of a part of
these shares to cover taxes at the time of vesting or exercise are not subject
to reporting or preclearance. However, purchases and sales of American Express
Stock are required to be reported.
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Private Placement Preclearance
All access persons need to obtain approval to invest in any private placements,
i.e., a security not offered to the public. Approvals must be obtained in
writing from your immediate leader, the Chief Investment Officer (CIO), and
Personal Trade Compliance prior to investing.
How to obtain approval - Write an explanation of the investment and submit the
request to your leader. Included in the request should be an explanation of:
o the nature of the investment
o how you were solicited
o approximate dollar amount you are planning to invest
o whether or not the opportunity was being offered to any of American
Express's managed accounts
o whether the security is likely to be purchased by an American Express
managed account fund in the future.
How private placements are approved - Your leader will approve or reject your
request, and return the request to you. If approval is granted, send the request
to the CIO for approval. If the CIO grants approval, send the request to
Personal Trade Compliance.
Personal Trade Compliance will respond to you requesting any additional
information or further documentation needed to make a decision. Upon receipt of
all necessary documentation, Personal Trade Compliance will then confirm in
writing whether you can invest. If your investment is approved, you must report
the investment on the quarterly reporting form, which will be provided to you.
If you have questions about how the private placement approval process applies
to a transaction you are considering, please contact us by sending a lotus note
to "Personal Trading" or call us at x 15196 before you invest.
-15-
60-Day Holding Period for Mutual Funds
After March 31, 2004, no access person may sell shares of a Mutual Fund
(including Proprietary Mutual Funds and Non-Proprietary Mutual Funds) held for
less than 60 calendar days.
After March 31, 2004, you must wait until calendar day 61 (Trade date + 60) to
sell or redeem all or part of your position. This prohibition applies across all
accounts in which you have a beneficial interest (so that you cannot buy shares
of a Mutual Fund in one account and sell them from another account within 60
days, unless the transactions fall within the exceptions set forth below). When
calculating the 60-day holding period, you must use the last-in, first-out
(LIFO) method. We use LIFO for two main reasons:
o the purpose of the rule is to discourage market timing. A first-in,
first-out (FIFO) or specific identification method could enable short-term
trading.
o application of a method other than LIFO could be very cumbersome and
time-consuming.
Exceptions
The Firm grants four exceptions to this rule:
o Money Market Funds - investments in money market funds are not subject
to the 60-day holding period.
o Automatic Investment and Withdrawal Programs - automatic investment
and withdrawal programs such as payroll deduction programs are not
subject to the 60-day holding period
o Dividend Reinvestments - purchases of shares of a Mutual Fund through
the reinvestment of dividends or capital gain distributions on such
fund are not subject to the 60-day holding period.
o ERISA Accounts - shares of a Mutual Fund held through an ERISA
account, such as a 401(k) account, are not subject to the 60-day
holding period. Note, however, that the prohibition on market timing
of Mutual Funds continues to apply to such accounts.
o Special Exceptions - The Personal Trading Code of Ethics Oversight
Committee may grant exceptions as a result of death, disability,
significant market downturn or other special circumstances (such as
periodic rebalancing). To request a special exception, send a written
request or Lotus note to Personal Trading. Your request will not be
approved unless the Personal Trading Code of Ethics Oversight
Committee determines that, under the circumstances, the requested
exception is consistent with the best interests of the Firm and the
shareholders of the Mutual Fund.
If you have questions about the 60-day holding period, please contact us by
sending a Lotus note to Personal Trading or call us at x15196 before you
execute.
None of these exceptions allow you to engage in market timing of Mutual Funds.
-16-
Additional Reporting Requirements
Failure to completely and accurately disclose brokerage accounts, holdings and
quarterly non-brokerage activity by the time frames specified by Personal Trade
Compliance may result in a sanction, which includes possible termination.
Initial Holdings Disclosure
New Access Persons must disclose certain securities holdings in which they have
a beneficial interest. All new Access Persons will receive a copy of the Access
Person Trading rules, which includes an Account Certification and Holdings
Disclosure form. This document must be returned to Personal Trade Compliance
H26/1875 within 5 days. An example of this form is located on pages 31-32.
Annual Certification and Annual Holdings Disclosure
In addition to reporting requirements already outlined, every Access Person must
submit an annual certification form. If you are new to the company, you will
receive a form and instructions when you attend your orientation session. If you
do not attend this orientation session, please contact the Personal Trade area
612-671-5196 for the information.
Access Persons must also disclose annually certain securities holdings in which
they have a beneficial interest. Failure to disclose annual holdings by the time
frames specified by Personal Trade Compliance may result in a sanction, which
includes possible termination.
All Access Persons will receive a form electronically on an annual basis from
Personal Trade Compliance. You should document your account(s) certification and
holdings disclosures on this form.
-17-
Quarterly Reporting and Certification
Personal Trade Compliance will send you a form each quarter to indicate whether,
for a given calendar quarter, you executed securities transactions outside of a
broker-dealer account or engaged in transactions in Mutual Funds as identified
on the form.
You must return the quarterly reporting form to Personal Trade Compliance within
10 calendar days of the last day of the quarter. You will also be asked to
certify quarterly that you have complied with the provisions of this Code of
Ethics relating to transactions in Mutual Funds, including the 60-day holding
period and prohibitions on market timing and the misuse of material non-public
information relating to Mutual Funds, including information relating to
portfolio contents or pricing.
-18-
Investment Clubs
There is no prohibition against joining an investment club and the account needs
to be held at one of the limited choice brokers, American Express Brokerage,
Schwab or Merrill Lynch, unless the club has been granted an exception from
Compliance.
Access Persons who are members of investment clubs are required to preclear club
transactions. Execution of non-precleared trades made by club members will
result in a violation for the American Express Access Person. (This also applies
to any other accounts which meet the criteria indicated under "security
activities which need to be reported" on page 7) When forming or joining an
investment club, provide the following to Personal Trade Compliance:
o a copy of the Brokerage Account Notification Form (see page 34)
o a copy of your investment club's bylaws
o a listing of the members of the club and an indication of any
employees or
o independent contractors of American Express in the club. Please
include the individual's employee (or P2 advisor) identification
number.
o the contact person for the club in case of questions
Giving Securities
If you are giving securities to a non-profit organization, please provide the
following information in writing prior to making the gift, to Personal Trade
Compliance:
o the name of the organization to which you are giving the securities
o a description of the security
o the number of shares being given
o the day you intend to buy the security (if not already owned)
o the day you intend to give the securities (if the gift was not
actually given on the day intended, please inform Personal Trade
Compliance)
Preclearance is not necessary for a gift to a non-profit organization, and the
60-day and 7-day rules do not apply.
For giving securities to a for-profit organization or to an individual or trust,
the preclearance and 7-day rules do apply if you are purchasing the securities
you intend to give. The 60-day rule does not apply. You will need to report the
transaction on the quarterly reporting form described above.
-19-
Sanctions
Sanctions will be imposed for violations of American Express, SEC, or NASD rules
or policies. It is standard in the industry to impose sanctions when violations
occur. These sanctions are communicated via violation letters and will vary
depending on the severity of the violation and/or if a record of previous
violations exists. Examples of potential sanctions include (but are not limited
to):
o notification to your broker to freeze your account. This is a typical
sanction if you fail to move your account(s) or maintain your account
purchase transactions to one of the three limited choice brokers - American
Express Brokerage, Schwab, or Merrill Lynch. The account could then be used
only for transfers and liquidations.
o notification of your leader and department head
o monetary fine
o unwinding the trade and forfeiting any profits to a charity, which is
typically the minimum sanction for a 60-day holding period or 7-day
blackout violation (see note below for forfeiture process)
o prohibition against personal trading for a specified period of time
o negative impact on the individual's bonus and/or performance rating
o termination
Sanctions are likely to escalate for multiple violations. A record of each
violation and sanction is maintained by Personal Trade Compliance.
Note: The process for forfeiture of profits is this:
|X| Calculate the profit using the last in, first out (LIFO) method.
|X| Send a check to a non-profit charity of your choice. (You may be able to
take a charitable deduction on your tax return for contributions to a
tax-qualified 501(c)((3) charity --- please consult with your tax advisor.)
|X| Send a copy of the calculation, the receipt from the charity and both sides
of the canceled check to Personal Trade Compliance.
The Personal Trading Code of Ethics Oversight Committee will work with your
leader to impose sanctions when necessary.
Unusual Trading Activity
The Personal Trading Code of Ethics Oversight Committee and your department head
review your personal trading activity regularly. We may ask to review specific
transactions with you or your broker if clarification is necessary. You may be
asked to supply Personal Trade Compliance with an explanation of your personal
trade(s). Examples of situations that may require a memo of explanation include,
but are not limited to:
o violations of the Personal Trading Code of Ethics
o trades in a security shortly before our Investment Department trades in the
same security on behalf of a client
o significant changes in trading volume
o patterns of short-term, in and out trading
o significant positions in illiquid securities
o a number of employees trading in the same security in the same time frame
-20-
Incremental Restrictions and Requirements for Investment Personnel
(see definition on page 6)
60-Day Holding Period for Individual Securities*
Profiting from short-term trading is prohibited. You may not buy, then sell (or
sell short, then cover the short) the same securities (or equivalent) within
60-calendar days, while realizing a gain. You must wait until calendar day 61
(Trade date + 60) to close out your position if you will be making a profit.
When calculating the 60-day holding period, you must use the last-in, first-out
(LIFO) method. We use LIFO for two main reasons:
o the purpose of the rule is to discourage short-term trading. A first-in,
first-out (FIFO) or specific identification method could encourage
short-term trading.
o application of a method other than LIFO could be very cumbersome and
time-consuming.
Exceptions
The Firm grants three exceptions to this rule:
o Small Trade - defined as $10,000 or less of S&P 500 securities or ten
option contracts in S&P 500 securities. There is a limit of one small
trade exception per calendar month. Please indicate on your
preclearance form "small trade exception". The small trade exception
still requires you to obtain preclearance.
o Futures and Indices - due to the size and liquidity of certain
markets, the following investment vehicles are exceptions to the
60-day holding period requirement and do not need to be precleared:
- financial futures (e.g., Treasury bond futures)
- stock index futures (e.g., S&P 500 index futures)
- currency futures (e.g., futures on Japanese Yen)
This exception also applies to options on futures and indices. Options on
equities continue to be subject to the 60-day rule.
* This is separate form the 60-day holding period for Mutual Funds.
-21-
Incremental Restrictions and Requirements for Investment Personnel
o Financial Hardship - a financial hardship must be an "immediate and heavy
financial need" and must be a situation where funds are not readily
available from other sources. Financial hardships must meet the criteria
outlined in the American Express Incentive Savings Plan (ISP). See the ISP
Summary Plan Description in the Total Compensation Guide for these
guidelines. Hardships are further subject to the following stipulations:
o The amount traded may not exceed the amount required to meet the
financial hardship, though the trade amount may include an amount
for anticipated income taxes and tax penalties. Please consult
with your tax advisor for advice.
o You must receive approval from Personal Trade Compliance before a
hardship trade. Begin by calling x15196 for assistance. You will
need to put your request in writing and to route it to Personal
Trade Compliance. You will receive a response within two business
days.
o Your request may not be approved if the standards outlined above
are not met.
If you have questions about the 60-day holding period please contact us by
sending a lotus note to "Personal Trading" or call us at x 15196 before you
execute.
-22-
Incremental Restrictions and Requirements for Investment Personnel
Research Analysts: Additional Rules
Research Analysts must conduct their personal trading activities in a manner
such that transactions for an analyst's customers, clients, and employer have
priority over transactions in securities or other investments of which he or she
is the beneficial owner. In order to clarify how Research Analysts at AEFA
should comply with this requirement, please note the following:
General Rules for all Analysts
o For Minneapolis based analysts, all new investment recommendations or
changes in recommendations should be communicated immediately in the
Research Notes section of Lotus Notes. Other appropriate means of
communication should be used in addition to Lotus Notes to facilitate broad
and immediate dissemination of the recommendation. For offices not using
Research Notes, the analyst must document their investment recommendations
in writing in the form required by their leader.
o Analysts should not trade a security in their own account if they
anticipate issuing a new recommendation or changing an existing
recommendation on the same security.
o Analysts should not trade in a security for their own account contrary to
their current recommendation with respect to the security or rating.
o Analysts should not trade in a particular security in their own account for
a period of 2 business days after a written recommendation with regard to
that security is disseminated through the Research Notes section of Lotus
Notes or by other means.
o Analysts who recommend a "paired trade" to a Hedge Fund will be held to the
7-day blackout rule. (See page 25 for definition of 7-day blackout rule.)
o Dedicated analysts supporting one or more of the Hedge Funds are considered
part of a "team management" group and are held to the 7-day blackout rule
for all trades made in the funds. (See page 25 for definition of 7-day
blackout rule.)
-23-
Offices Using Team Management Approach
In an effort to remain consistent across offices who use a team-based
approach where research analysts and others are actively involved in
portfolio management discussions and decisions, the 7-day blackout rule
(see page 25 of the Personal Trading Code of Ethics) will apply to all
personnel in those offices. Note that this process does not take the place
of the standard preclearance process but is in addition to preclearance.
Looking Back 7 Days
To avoid a potential violation, each time an employee wants to make a
personal trade s/he should check with their local Compliance Officer, to
make sure there has been no trading in the security for a portfolio advised
account (for that particular office) in the past 7 days. If there has been
a trade in the past 7 days and the employee proceeds to trade, this trade
will be considered a violation.
Looking Ahead 7 Days
To avoid a potential violation, we recommend that the employee communicate
with each of the Portfolio Managers about the potential trade to determine
whether the Portfolio Manager anticipates any activity in that security in
the next 7 days within the portfolio. When an employee's personal trade in
a name occurs within the 7-day window before a trade in the same name for
an advised account, this will be flagged as a potential violation.
Compliance will then determine from the Portfolio Manager whether the
individual who conducted the personal trade was privy to the information
about the impending advised account trade. The accountability will be on
the employee to explain why the personal trade should not be considered a
violation.
If you have any questions about the process, contact your local Compliance
Officer.
-24-
Incremental Portfolio Manager Requirements and Restrictions
7-day Blackout Period
Portfolio managers are not allowed to buy or sell a security during the
seven-day blackout period, which is defined as:
o trade date less seven calendar days before and trade date plus seven
calendar days after a fund or account they manage trades in that same (or
equivalent) security. This means a portfolio manager must wait until
calendar day 8.
For example, a portfolio manager's fund trades XYZ Co. on August 12. The last
day for a personal trade of XYZ Co. is August 4 and the next day a personal
trade can be made is August 20.
This rule includes all individual portfolio trades as well as program trades,
except for pattern accounts.
Exceptions
The Firm grants two exceptions to this rule:
o Small trades - defined as $10,000 or less of S&P 500 securities or ten
option contracts in S&P 500 securities. There is a limit of one small trade
exception per calendar month. Please indicate on your preclearance form
"small trade exception". The small trade exception still requires you to
obtain preclearance.
o Futures and Indices - due to the size and liquidity of certain markets, the
following investment vehicles are exceptions to the 7-day blackout period
rule and do not need to be precleared:
o financial futures (e.g., Treasury bond futures)
o stock index/futures (e.g., S&P 500 index/futures)
o currency futures (e.g., futures on Japanese Yen)
This exception also applies to options on futures and indices. Options on
equities continue to be subject to the 7-day blackout rule.
If you have questions about how the 7-day blackout rule applies to a trade you
are considering, please contact us by sending a lotus note to "Personal Trading"
or call our hotline at x 15196 before you execute your trade.
-25-
Preclearance of Proprietary Mutual Fund Trades
Equity portfolio managers (including associate portfolio managers) and
fixed-income sector leaders and managers must obtain prior approval - known as
preclearance - when buying or redeeming or otherwise trading in shares of any
Proprietary Mutual Fund for which the portfolio manager or sector leader's or
manager's team manages at least part of the portfolio. The Senior Vice
President-Fixed Income and the CIO must obtain preclearance when trading in
shares of any Proprietary Mutual Fund. When requesting preclearance, you must
follow these procedures:
Approvals must be obtained in writing from the CIO and from Personal Trade
Compliance prior to investing.
How to obtain approval - Write an explanation of the investment and submit the
request to the CIO (except that, for investments by the CIO, the CIO should send
the request directly to "Personal Trading" via Lotus notes). Included in the
request should be an explanation of:
o The Mutual Fund you intend to purchase or sell
o The date of your last transaction in the Mutual Fund
o Your certification that the transaction will not result in a 60-day holding
period violation in any accounts where you have a beneficial interest.
o Your certification that the transaction will not result in the use of
material non-public information relating to the portfolio contents or
pricing of the Proprietary Mutual Fund.
How Proprietary Mutual Fund transactions are approved - The CIO will approve or
reject your request, and return the request to you. If approval is granted, send
the request via Lotus notes to "Personal Trading".
Personal Trade Compliance will respond to you, requesting any additional
information or further documentation needed to make a decision. Upon receipt of
all necessary documentation, Personal Trade Compliance will then confirm in
writing whether you can engage in your transaction
If you have questions about how the Proprietary Mutual Fund approval process
applies to a transaction you are considering, please contact us by sending a
Lotus note to "Personal Trading" or call us at x 15196 before you invest.
Exceptions:
o Automatic Investment and Withdrawal Programs - automatic investment
and withdrawal programs such as payroll deduction programs are subject
to the Proprietary Mutual Fund preclearance requirement only at the
time such a program is established or modified.
-26-
American Express'
Statement of Policy and Procedures with Respect to Receipt
and Use of Material, Inside (Non-Public) Information
This statement represents the policy of American Express Financial Advisors
(AEFA) and its subsidiaries with regard to the receipt and use of material
inside (non-public) information. If you have any questions about this policy,
contact the Law Department.
1. Court and SEC administrative decisions interpreting Rule 10b-5, promulgated
under the Securities Exchange Act of 1934, make it unlawful for any person
to trade or recommend trading in securities while in possession of material
inside (non-public) information.
In particular, trading by a corporate insider or by someone who is not a
corporate insider, while in possession of material non-public information,
is unlawful where the information was disclosed to the non-insider in
violation of an insider's duty to keep it confidential, or the non-insider
had a duty to keep the information confidential or the information was
misappropriated (i.e., stolen). In addition, communicating material,
non-public information to others is unlawful.
2. Material inside information is any information about a company or the
market for the company's securities that has come directly or indirectly
from the company and that has not been disclosed generally to the
marketplace, and that the dissemination of which is likely to affect the
market price of any of the company's securities or is likely to be
considered important by reasonable investors, including reasonable
speculative investors, in determining whether to trade in such securities.
3. Information should be presumed "material" if it relates to such matters as
dividend increases or decreases, earnings estimates, changes in previously
released earnings estimates, significant expansion or curtailment of
operation, a significant increase or decline of orders, significant merger
or acquisition proposals or agreements, significant new products or
discoveries, extraordinary borrowing, major litigation, liquidity problems,
extraordinary management developments, purchase or sale of substantial
assets, etc.
4. "Inside" information is information that has not been publicly disclosed.
Information received about a company under circumstances that indicate that
it is not yet in general circulation and that such information may be
attributable, directly or indirectly, to the company (or its insiders)
should be deemed to be inside information. As a rule, one should be able to
point to some fact to show that the information is generally available; for
example, its announcement on the broad tape or by Reuters, The Wall Street
Journal or trade publications.
5. In addition to the prohibition on trading on insider information, AEFA -
associated persons are prohibited from front-running. Front-running is
trading for a personal account with the expectation that an AEFA managed
account will soon trade the same security.
-27-
6. To supplement its own research and analysis, to corroborate data compiled
by its staff, and to consider the views and information of others in
arriving at its investment decisions, AEFA allocates brokerage business to
broker-dealers who are in a position to provide such services. This policy
is consistent with AEFA's efforts to secure best price and execution.
However, it is AEFA's policy that brokerage not be allocated in
consideration of the furnishing of material inside information. AEFA -
associated persons, in recommending the allocation of brokerage to
broker/dealers, should not give consideration to any material inside
information furnished by any broker/dealer.
7. AEFA - associated persons have no obligation to investment companies or
other clients advised by AEFA to trade or recommend trading on the basis of
material, non-public information in their possession. AEFA - associated
persons' fiduciary responsibility to their clients does not require that
they disregard the limitations imposed by the federal securities laws,
particularly Rule 10b-5.
8. Whenever an AEFA - associated person receives material information about a
company that he or she knows or has reason to believe is directly or
indirectly attributable to such company (or its insiders), he or she must
determine that the information is public before trading or recommending
trading on the basis of such information or before divulging such
information to any person. If he or she has any question at all as to
whether the information is material or whether it is inside and not public,
he or she must resolve the question by contacting the Law Department before
trading. He or she must not discuss the information with any AEFA -
associated person of AEFA other than his/her direct supervisor, the
director of trading or the vice president of investment services. In
addition, care should be taken so that the information is secured.
9. If there are any unresolved questions whatsoever in an AEFA - associated
person's mind as to the applicability or interpretation of the foregoing
standards or the propriety of any desired action, he/she must discuss the
matter with the law department prior to trading or recommending trading.
10. Penalties for trading on material, non-public information are severe, both
for the individuals involved in such unlawful conduct and their firms.
Penalties include civil injunctions; suspension or bar from working in the
securities industry; triple damages; forfeiture of profits; jail terms of
up to 10 years; criminal penalties of up to $1 million for individuals and
$2.5 million for firms; and civil fines of up to three times the profit
gained or loss avoided for individuals, or the greater of $1 million or
three times the profit gained or loss avoided for firms. In addition, any
violation of this policy can be expected to result in serious sanctions by
AEFA, including dismissal of the person(s) involved. Violations may also
result in a permanent bar from the securities industry.
11. All AEFA - associated persons will be subject to the following personal
trading procedures. AEFA - associated persons will:
o Employees and P1 Advisors must conduct all personal trades through one of
three brokers - American Express Brokerage, Schwab, or Merrill Lynch,
unless an exception has been granted
-28-
o Report any change in the above election promptly, in writing, to Personal
Trade Compliance.
o Complete an annual certification form about their personal securities
activities (example attached).
o Provide any additional information about personal trading activities at
AEFA's request.
Employees in the Investment Department and Asset Management Group will be
required to preclear all personal trades.
These rules apply to securities trading in which you have a beneficial
ownership. This includes accounts held in the name of any of the following
individuals:
o You
o Your spouse/partner
o Financially dependent members of your household
In addition, these rules apply to the following types of accounts if any of the
individuals listed above:
o Is a trustee or custodian for an account (e.g., for a child or parent)
o Exercises discretion over an account via a power of attorney arrangement or
as an executor of an estate after death
o Owns an IRA
o Participates in an investment club
o Provide investment advice by reason of any contract, understanding,
relationship, agreement or other arrangement substantially equivalent to
direct or indirect ownership. (If you give investment advice or effect
securities trading for others, notify Personal Trade Compliance
The Chief Investment Officer and the Senior Vice President -Institutional are
responsible for the implementation of this statement of policy with respect to
individuals in the Investment Department and Asset Management Group. The
Compliance Department is responsible for implementing this Statement of Policy
with respect to all other corporate-office associated persons. The Senior Vice
President and General Sales Manager - U.S. Advisor Group is responsible for
implementing this Statement of Policy in the field.
This statement will be distributed to all AEFA - associated persons and will be
issued and explained to all new personnel at the time of their employment with
AEFA. In addition, at least annually and at such other times as the Chief
Compliance Officer may determine it is necessary or appropriate, representatives
of the Compliance Department and/or General Counsel's Office will meet with
Investment Department personnel to review this Statement of Policy.
The Personal Trading Code of Ethics Oversight Committee, consisting of
representatives of the Compliance Department, the Investment Department,
Corporate Audit and the General Counsel's Office, will review records maintained
in connection with trading.
The General Counsel's Office and Compliance will review this Statement of Policy
on a periodic basis and may revise it in the light of developments in the law,
questions or interpretation, and practical experience with the procedures
contemplated by the Statement.
-29-
Forms and Completion Instructions
Below are the steps for completing the brokerage and Mutual Fund account
certification and disclosure form found on the following page:
1. Write your name, Social Security number, ID number, and routing on the top
portion of the form.
2. Check the appropriate box in Section 1.
Brokerage firm or Mutual Fund account - an account in which securities
are bought and sold (i.e. stock, bonds, futures, options, mutual funds
etc.). Do NOT include employer-sponsored incentive savings plans, or
the American Express Stock Purchase Plan.
o If you checked "YES" in Section 1, complete all requested
information in Sections 2, 3 and 4.
o If you checked "NO" in Section 1, and you do not have
accounts but you have holdings to report please fill out
section 2, 3 and 4. If you have no accounts and no holdings
to report, please complete Sections 3 and 4.
3. In Section 2, please be sure to state the firm name, account number, and
type of ownership (definitions listed below):
o Direct (D): you are the owner of the account (i.e., joint or single
ownership).
o Indirect (I): accounts in which you have a beneficial interest, and that
are registered in another person's name. This includes members of your
household (e.g., spouse, partner, minor children, etc.).
o Club (C): you are a member of an investment club.
o Advised (A): you serve in an advisory capacity by making investment
decisions or recommendations.
o Managed (M): you have no discretion over the investments in the account.
4. Complete section 3 if you are a member of a board of directors of a
for-profit company.
5. Sign and date the form in Section 4.
-30-
Initial Personal Account and Holdings Disclosure Form - Access Persons
Name: ________________________ Social Security # _____________________
ID Number: ___________________ Routing: ______________________________
Section 1
Do you or any members of your household have any brokerage or mutual fund
account(s) (including American Express Brokerage accounts) in which you have a
direct or indirect beneficial interest, advise for others, have managed by
another person(s), or participate in as a member of an investment club?
o YES (if yes, complete Section 2 listing all accounts including American
Express Brokerage, Schwab or Merrill Lynch and all holdings within those
accounts. Then complete section 3 and 4).
o NO (if you do not have accounts but you have holdings to report please fill
out section 2, 3 and 4. If you have no accounts and no holdings to report,
please complete Section 4).
Section 2
ACCOUNT/HOLDINGS DETAIL
o Please complete all columns.
o Please be sure to sign the form, or initial if submitting electronically.
o If submitting electronically please send via lotus notes to Personal
Trading.
o If submitting hard copy please send form to Personal Trade Compliance,
H26/1875.
o This document must be received in Personal Trade Compliance within 5 days.
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
Brokerage Firm Name or Security Account Ownership Quantity
Institution Name where Description Number (D, I,C, A, M)* (shares/face amt.)
securities are held. If not (Name of Social Security number
held in an account, write N/A Security) if different from your
own
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
- --------------------------------- ---------------- ----------- ------------------------- ---------------------
*D = Direct I = Indirect C = Club A = Advised M=Managed
If more space is needed, please attach the additional information on a separate
page. Please sign and date any attached sheets.
-31-
Section 3
List any for-profit companies for which you are a member of the Board of
Directors (if none, please indicate):
_______________________________________________________________________________
Section 4
By signing this document, I am certifying that:
o The accounts listed above are the only accounts in which I have a direct or
indirect beneficial interest, advise for others, have managed by another
person(s), or participate in as a member of an investment club at this
time.
o I understand that failure to completely disclose all of my brokerage
accounts and mutual fund accounts to Personal Trade Compliance may result
in sanctions, which could lead to termination.
o I have completely filled out this certification form so a letter
authorizing duplicate confirmations and statements can be sent to my broker
until my accounts have been transferred to one of the three limited choice
brokerage firms.
o I understand that failure to completely disclose all of my security
holdings to Personal Trade Compliance or failure to complete this form by
the required due date may result in sanctions, which could include
termination.
o I will not participate in market timing of any mutual fund.
o If I open any new brokerage accounts or mutual fund accounts I will notify
Personal Trade Compliance in writing by filling out a Brokerage Account
Notification form before the first trade is conducted.
o The securities listed above are the holdings I have at this time. I
understand that failure to completely disclose all of my holdings to
Personal Trade Compliance may result in sanctions, which could include
termination.
o I have read and understand the American Express insider trading policy and
Personal Trading Code of Ethics document and will abide by them.
- -------------------------------------- --------------------
Signature Date
Return to: Personal Trade Compliance -- H26/1875
-32-
Brokerage Account Notification Form Process
On the following page is the Employee Notification Form that is required to be
completed if you--or an immediate family member--maintains an external brokerage
account. The external brokers that are allowed are Schwab or Merrill Lynch only.
Please be sure to:
o Fill out the broker information section.
o Fill out the access person information section. Be sure to include family
members' information if applicable
o Send the form to Personal Trade Compliance-H26/1875 no later than 5 days
after receiving this packet.
If you have questions, please send a Lotus Note addressed to: Personal Trading
or contact the Personal Trade Hotline 612-671-5196.
-33-
***This is not an account transfer form and
will not cause your securities to move***
Brokerage Account Notification Form
When to use this form: AEFA personnel are
required to
complete this form
when opening any
new brokerage
account (including
new accounts opened
to support an
account transfer).
Step 1: Complete Employee Information Section
--------------------------------------- ---------------------------------------------------------------------------------------
Name (First and Last)
--------------------------------------- ---------------------------------------------------------------------------------------
ID Number (eg., E12345) / Position / [ ] Corporate Office Employee [ ] P1 Advisor [ ] Field Employee
--------------------------------------- ---------------------------------------------------------------------------------------
Social Security Number
--------------------------------------- ---------------------------------------------------------------------------------------
Field or Corporate Office Routing
--------------------------------------- ---------------------------------------------------------------------------------------
Step 2: Complete Brokerage Account Information Section
--------------------- ----------------- ------------------------- -------------- --------------------------------
Broker Dealer (choose one)
--------------------------------
Name on Account Account Number Social Security Number Ownership * American Charles Merrill
Express Schwab Lynch
Brokerage
===================== ================= ========================= ============== ============ ========= =========
--------------------- ----------------- ------------------------- -------------- ------------ --------- ---------
--------------------- ----------------- ------------------------- -------------- ------------ --------- ---------
--------------------- ----------------- ------------------------- -------------- ------------ --------- ---------
--------------------- ----------------- ------------------------- -------------- ------------ --------- ---------
--------------------- ----------------- ------------------------- -------------- ------------ --------- ---------
--------------------- ----------------- ------------------------- -------------- ------------ --------- ---------
* E.g. Individual, Joint, IRA, UTMA/UGMA, spousal IRA, etc.
STEP 3: SUBMIT COMPLETED FORM TO PERSONAL TRADE COMPLIANCE
---------------------------------------------------------------------------
A. To submit via Interoffice mail, send to Personal Trade Compliance,
H26/1875.
---------------------------------------------------------------------------
B. To submit via Lotus Notes, attach completed form and send to Personal
Trading.
---------------------------------------------------------------------------
Limited Choice Exception Request
Complete this form if one of the situations described below applies to you
and you wish to request an exception to the limited choice policy of
conducting trading through one of the three authorized firms.
Exception Policy - The typical kinds of situations for which Personal Trade
Compliance expects exception requests include:
A. spouse accounts where spouse of AEFA employee works for a broker/dealer
firm that prohibits outside accounts (supporting documentation to include
copy of other firm's policy)
B. accounts for the express business purpose of gaining competitive
intelligence about other firm's practices (supporting documentation to
include leader approval and specific business purpose for request)
C. non-transferable limited partnership interests held prior to implementation
of limited choice policy (supporting documentation to include copies of
statements reflecting these holdings) Note: Other holdings and trading
would remain subject to limited choice.
D. managed accounts where, e.g., employee has authorized broker to exercise
investment discretion on employee's behalf and employee has no discretion
over what specific securities are traded in account (supporting
documentation to include: power of attorney document signed by employee and
written representations from employee and from broker that employee has no
trading discretion)
Section 1. Request for Exception (completed by employee, please print)
Employee Name: ____________________ Employee ID: ________ Routing: _______
[ ] Corporate Office [ ] P1 Advisor [ ] Field Employee
Exception type described above (also attach supporting documentation):
[ ] A
[ ] B (leader approval - print leader's name _________________ leader
signature_______________________)
[ ] C
[ ] D
[ ] Other - explain in sufficient detail on an attachment
Broker Name: _________________________________ Account # _______________
Account Ownership: _________________________________
________________________________________________________________________
Employee Signature Social Security # Date
Section 2. Exception Review (completed by Personal Trade Compliance)
o Request on hold, more documentation needed - Please provide:
o Request Denied
o Request Approved
________________________________________________________________________
1st Level Approval Date
________________________________________________________________________
2nd Level Approval Date
-35-