2020-08-27T07:42:10-05:00 2019-10-31 GRANT THORNTON LLP 757 THIRD AVENUE 4TH FLOOR NEW YORK NY 100172013 990 2018-11-01 320178959 Securities Industry and Financial Markets Association % NAM KIM SECU 2123131371 120 Broadway Suite 35 FL New York NY 10271 DAVID KRASNER CFO & CAO 2123131371 2020-08-26 true Daniel Romano P00504182 2125990100 69.248.160.70 26377520202405000000 2020-08-27 P 3651C5C9EB0776EA9BB0B9BA1CBD3BEA8FFF94AA 70ACC86991083BDF2F16D81AEF67962E1919B78C 2018 2020-11-19 02:30:22Z KENNETH E BENTSEN 120 Broadway New York NY 10271 57987376 false X www.sifma.org X 2006 DE SIFMA IS THE LEADING TRADE ASSOCIATION FOR BROKER-DEALERS, INVESTMENT BANKS AND ASSET MANAGERS OPERATING IN THE U.S. AND GLOBAL CAPITAL MARKETS. (SCH O) 39 38 177 13866 8450 140671 0 0 58627281 55921747 930698 1164044 777898 901585 60335877 57987376 529054 257539 0 0 36033074 33792772 0 0 0 24766918 23287406 61329046 57337717 -993169 649659 50021840 53179679 26432106 30403710 23589734 22775969 X SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industrys nearly 1 million employees, we advocate on legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. false false STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS CONTINUED DEVELOPMENT AND MAINTENANCE OF BEST PRACTICES THAT ARE CONDUCIVE TO EFFICIENT CONDUCT OF THE BUSINESS AND MEMBERS OF THE ORGANIZATION: Cybersecurity Cybersecurity is a top priority in the financial industry to ensure the security of customer assets and information and the efficient, reliable execution of transactions within markets. It is a shared objective that demands an integrated approach but is often complicated with an overlapping patchwork of regulation. In fact, no fewer than 11 federal agencies impose some form of cybersecurity requirements. This is in addition to individual state, SRO and jurisdictional requirements, as well as standards from the National Institute of Standards and Technology (NIST) and International Organization for Standardization (ISO). As a global industry, all market participants are interconnected and part of the same ecosystem and need to work together to protect the sector as a whole. This year, SIFMAs Quantum Dawn cybersecurity exercise went global. Together, financial institutions and the sector, as a whole, practiced and improved coordination and communications with key industry and government partners in order to maintain equity market operations in the event of a systemic cyber-attack. An effective and efficient cybersecurity policy is achieved most easily through harmonized, risk-based global standards that leverage extensive investments already made. The financial industry is committed to furthering the development of industry-wide cybersecurity initiatives that protect our clients and critical business infrastructure, improve data sharing between public and private entities and safeguard customer information. SIFMA is actively engaged in coordinating the effort to support a safe, secure information infrastructure, with cybersecurity resources which provide 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; see the Resources section of this book for our exercises, tests and other resources. Consolidated Audit Trail The SEC and the SROs continue to develop a comprehensive Consolidated Audit Trail (CAT) that would enable regulators to efficiently and accurately track all activity throughout the U.S. for equities and options trades. The CAT will allow regulators to link every order through its entire life cycle, including cancellations, modifications and executions, and the CAT database will link all orders with the account holder. As such, the CAT will enable regulators to conduct cross-market surveillance and market reconstruction by pulling together detailed trading data from all market centers. SIFMA has focused on concerns around risks related to the collection of Personally Identifiable Information (PII). SIFMA has engaged the SEC and the SROs for adjustments to the CAT to ensure adequate data protection and response, as well as restricting access to any submitted data to a strictly controlled environment. In October, the SROs filed for exemptive relief to remove certain PII - date of birth, SSN and account number - from CAT. Regulation Best Interest Implementation In June, the SEC voted 3-1 to adopt Regulation Best Interest. Reg BI requires broker-dealers to act in the best interest of their retail customers when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. The SEC also adopted Form CRS, a customer relationship summary. Finally, the SEC also issued interpretive guidance regarding the broker-dealer exclusion from the definition of investment advisers, and interpretive guidance regarding the standard of conduct for investment advisers. Since early 2009, SIFMA has consistently advocated for the establishment of a best interest standard for financial professionals when providing investment advice. For that reason, we have supported the efforts of the SEC to finalize comprehensive federal regulations that meaningfully raise the bar for broker-dealers when providing personalized investment advice about securities to retail customers. While well-intentioned, a patchwork of state-by-state approaches currently under discussion would undermine the new federal standard and also the interest of investor protection generally. To assist firms in understanding the various Reg BI and Form CRS requirements and their potential impacts, SIFMA partnered with Deloitte to develop a Reg BI implementation guide as a high-level framework for compliance and for assessing the rules potential impacts on firms. Senior Investor Protection It is vital that we are able to protect our senior investors from financial exploitation and the dangers of cognitive decline. SIFMA has been working with industry members, academics, and state and federal lawmakers to advance policies, practices, rules, regulations and statutes which enhance senior investor protections. A growing number of states have enacted senior investor protection laws that extend to broker-dealers, and several others are currently working to develop a similar path. Additionally, FINRA Rule 2165, permitting pauses on certain suspicious activity, and FINRA Rule 4512, requiring firms to request trusted contact information from certain clients, went into effect in February 2018. SIFMA continues to push for updated laws and regulations to get ahead of this emerging threat and better equip advisors - through regional workshops, toolkits and more - to protect their aging client base. This is an issue of increasing importance, and SIFMA looks to continue to lead on this issue, as it has for the past several years. Retirement Savings Legislation The retirement system in the United States is helping millions of Americans save for a secure retirement and maintain their standards of living as retirees. However, increased life expectancies, the uncertain future of Social Security benefits, higher health care costs, and low interest rates have increased the need for American workers to save more for retirement. Since its inception, the retirement system has become more effective and portable, leading to increased financial security for many Americans. Retirement savings plans also play an important role in the capital markets, as the contributions from these plans form a large amount of the capital invested in our financial markets. SIFMA is committed to increasing retirement security and has identified three primary pillars to reach this goal: 1. Expanding access to plans, 2. Increasing participation and decreasing leakage, and 3. Enhancing education. SIFMA encourages passage of retirement legislation that includes Open MEPs, increased incentives for small businesses to open plans, an increase in the RMD age, along with other provisions to improve access to retirement savings. Market Data Market data is information about current stock prices, recent trades, and supply-and-demand levels sold by national securities exchanges. Access to this information is essential to Americas world-leading capital markets, because all participants need timely and complete data to make informed trading decisions. Because exchanges control that information, they have enormous pricing power over the cost to access the data. At SIFMA, we believe market data reform should focus on promoting competition, supporting efficient markets, and providing a transparent and fair system for all investors. We continue to advocate for improvements to the SIP content, consistent with the recommendations the SEC is developing for proposals to changes to the SIP, and for the addition of competing SIPs to replace single-consolidator model. Housing Finance Reform The U.S. housing market is a critical piece of the general economy. It represents one-fifth of U.S. GDP and 35% of all private, non-financial debt in the country. In March 2019, a Presidential Memorandum was issued for Federal Housing Finance Reform that directed the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) to conduct a broad review of our housing finance system, including the Government-Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac. In September, the Treasury and HUD released their housing finance reform plans. SIFMA supports the U.S. Administration and Congress working together to identify a permanent solution. Moving the GSEs out of the conservatorship of their regulator, the Federal Housing Finance Agency (FHFA), is a goal that we support but not without Congress taking the necessary action to address the need for an explicit government guarantee to ensure stable mortgage-backed securities (MBS). In their plans, the Administration outlined both legislative and administrative steps for reform of the GSEs STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS ADVOCACY ADVOCACY FOR ISSUES OF IMPORTANCE TO ITS MEMBERS: SIFMA BRINGS TOGETHER THE SHARED INTERESTS OF HUNDREDS OF BROKER-DEALERS, BANKS AND ASSET MANAGERS. WE ADVOCATE IN SUPPORT OF EFFECTIVE AND RESILIENT CAPITAL MARKETS. 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. A Financial Transaction Tax A financial transaction tax (FTT) is a levy on transactions of stocks, bonds and derivatives. While proposed as a means to raise funds or curb behavior, a financial transaction tax amounts to a sales tax on investors, savers and retirees. SIFMA is strongly opposed to a financial transaction tax, which raises costs to the issuers, pensions and investors who help drive economic growth, negatively impacting those saving for retirement, college or to buy a home by decreasing the amount of their savings. Moreover, major economies that have adopted such taxes have had overwhelmingly negative results, including reduced asset prices, trading moving to other venues, market dislocation and decreased liquidity. Past experience also suggests that it would raise less revenue than supporters often claim. The U.S. financial markets are the broadest and deepest in the world and this benefits American individuals and businesses in many ways. An FTT would substantially reduce market liquidity and impair the strength of the U.S. capital markets, a move that runs counter to strong, sustainable, and balanced growth, and the financial impact of such a tax is not just on markets. Tax Reform The Tax Cuts and Jobs Act (TCJA) significantly changed the way U.S. multinational foreign profits are taxed. Importantly, while the Global Intangible Low Tax Income (GILTI) regime was introduced as an outbound antibase erosion provision, it has not worked as envisioned. SIFMA supports final regulations that account for the unique concerns of financial services companies, results in the lowest possible effective tax rate on foreign earnings, mitigates the unintended consequences caused by interest expense allocation rules, and obtains reasonable treatment for US branches operating in foreign jurisdictions. Similarly, SIFMA also supports final regulations for Base Erosion and Anti-abuse Tax (BEAT) and tax-deductible interest that mitigate the impact of taxable interest on inter-company debt. This change would also better reflect the original intent of Congress. Finally, the TCJA imposed a new limitation on the deduction for business interest expense also known as the 163(j) limitation. SIFMA is in favor of final regulations that ensures interest is not imputed on certain types of uncleared swaps. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS CONFERENCES AND SEMINARS SIFMA EVENTS FOSTER MEANINGFUL CONVERSATIONS ABOUT CRITICAL ISSUES IMPACTING OUR FINANCIAL MARKETS. BY PROVIDING RELEVANT AND LIVELY FORUMS, WE BRING TOGETHER INDUSTRY PROFESSIONALS WITH LEADING INDUSTRY EXECUTIVES AND EXPERTS, REGULATORS, AND POLICYMAKERS TO DISCUSS THE MOST PRESSING ISSUES FACING THE CAPITAL MARKETS TODAY. SIFMA ANNUAL MEETING SIFMAs Annual Meeting brings together the most influential voices shaping todays capital markets. Through candid one-on-one conversations and expert panel discussions, we assess challenges and gain insights into opportunities ahead. SIFMA COMPLIANCE & LEGAL SOCIETY ANNUAL SEMINAR For 52 years, SIFMAs C&L Annual Seminar has served as the preeminent event for compliance and legal professionals working in financial services. Throughout the three-day program, participants hear directly from industry leaders and regulators on the latest developments and trends and build professional relationships to collaborate better. With focused discussions by noted keynote speakers and subject matter experts, attendees will have the opportunity to earn CLE credit, including diversity and ethics credit, and network with peers. OPERATIONS CONFERENCE & EXHIBITION SIFMAs annual Operations Conference & Exhibition gathers operations, technology and regulatory leaders from across the securities industry for three days of discussions, addressing the industrys most critical priorities. THE SECURITIES INDUSTRY INSTITUTE The Securities Industry Institute (SII) is the premier executive development program for financial industry professionals, hosted by SIFMA and Wharton. For 69 years, SIFMA and The Wharton School at the University of Pennsylvania have partnered to develop the industrys high-potential, rising leaders. Each March, SII brings together 800 participants from across the industry with a world-class faculty on the campus of The Wharton School in Philadelphia. Participants meet for one week over three consecutive years to develop leadership and managerial skills, and enhance investment and industry knowledge. SIIs cost-effective talent development approach delivers actionable knowledge that is implementable today: the mission of the Institute is to equip each participant with practical information, ideas, and answers directly applicable to their present and future responsibilities. Its customized curriculum is redesigned each year to reflect the needs of an ever-changing industry landscape. false false false true false false false true false true false false false true true true false false false false false false false false false false true false true false false false false false false false false false false false false false false true 167 0 true 177 true true true false false false false false true false X 39 38 false false false false true true false true true false false true true true true true true true true false X NAM KIM 2123131371 120 BROADWAY 35TH FLOOR NEW YORK NY 10271 JAMES ALLEN CHAIRMAN OF THE BOARD 2.0 0.0 X X 0 0 0 JOSEPH E SWEENEY VICE CHAIR 2.0 0.0 X X 0 0 0 JAMES WALLIN TREASURER 2.0 0.0 X X 0 0 0 KEVIN BAILEY DIRECTOR 1.0 0.0 X 0 0 0 VALERIE BROWN DIRECTOR 1.0 0.0 X 0 0 0 KENNETH CELLA DIRECTOR 1.0 0.0 X 0 0 0 MICHAEL CROWL DIRECTOR 1.0 0.0 X 0 0 0 LISA DOLLY DIRECTOR 1.0 0.0 X 0 0 0 MICHAEL DURBIN DIRECTOR 1.0 0.0 X 0 0 0 MATTHEW ENYEDI DIRECTOR 1.0 0.0 X 0 0 0 JOHN ETTELSON DIRECTOR 1.0 0.0 X 0 0 0 PAUL GALIETTO DIRECTOR 1.0 0.0 X 0 0 0 ROBERT HAWLEY DIRECTOR 1.0 0.0 X 0 0 0 TIM HOCKEY DIRECTOR 1.0 0.0 X 0 0 0 LISA KIDD HUNT DIRECTOR 1.0 0.0 X 0 0 0 JAMES KELLIGREW JR DIRECTOR 1.0 0.0 X 0 0 0 FRANCIS KELLY DIRECTOR 1.0 0.0 X 0 0 0 JIM KERR DIRECTOR 1.0 0.0 X 0 0 0 GENE KIM DIRECTOR 1.0 0.0 X 0 0 0 ANDREW KOMAROFF DIRECTOR 1.0 0.0 X 0 0 0 RONALD KRUSZEWSKI DIRECTOR 1.0 0.0 X 0 0 0 THOMAS MCDONALD DIRECTOR 1.0 0.0 X 0 0 0 CHARLOTTE MCLAUGHLIN DIRECTOR 1.0 0.0 X 0 0 0 THOMAS MERCHANT DIRECTOR 1.0 0.0 X 0 0 0 CRAIG MESSINGER DIRECTOR 1.0 0.0 X 0 0 0 BRAND MEYER DIRECTOR 1.0 0.0 X 0 0 0 SANDIE O'CONNOR THRU 022019 DIRECTOR 1.0 0.0 X 0 0 0 THOMAS PLUTA DIRECTOR 1.0 0.0 X 0 0 0 DOUGLAS PREISER DIRECTOR 1.0 0.0 X 0 0 0 BRENDAN REILLY DIRECTOR 1.0 0.0 X 0 0 0 PAUL REILLY DIRECTOR 1.0 0.0 X 0 0 0 JIM REYNOLDS DIRECTOR 1.0 0.0 X 0 0 0 JOHN FW ROGERS DIRECTOR 1.0 0.0 X 0 0 0 JEFFREY ROSEN DIRECTOR 1.0 0.0 X 0 0 0 PETER SCHNEIDER DIRECTOR 1.0 0.0 X 0 0 0 MARK STEFFENSEN DIRECTOR 1.0 0.0 X 0 0 0 JOHN TAFT DIRECTOR 1.0 0.0 X 0 0 0 KENNETH E BENTSEN JR PRESIDENT AND CHAIR 40.0 0.0 X X 2412616 0 77810 SUZANNE SHANK DIRECTOR (THRU 02/2019) 1.0 0.0 X 0 0 0 SYLVAIN CARTIER DIRECTOR (THRU 07/2019) 1.0 0.0 X 0 0 0 GARY WUNDERLICH DIRECTOR (THRU 01/2019) 1.0 0.0 X 0 0 0 SHELLEY O'CONNOR DIRECTOR 1.0 0.0 X 0 0 0 IRA D HAMMERMAN EVP/GC (See Sch. J 457 FN) 40.0 0.0 X 984236 0 89975 DAVID B KRASNER CFO & CAO 40.0 0.0 X 670796 0 74866 RANDOLPH C SNOOK EXECUTIVE VP (THRU 12/2018) 40.0 0.0 X 1076405 0 69145 CHERYL L CRISPEN EXECUTIVE PRESIDENT 40.0 0.0 X 561536 0 74745 JOSEPH SEIDEL COO 40.0 0.0 X 84121 0 6040 SALVATORE CHIARELLI EXECUTIVE VICE PRESIDENT 40.0 0.0 X 353532 0 63056 JAMIE WALL EXECUTIVE VICE PRESIDENT 40.0 0.0 X 0 0 0 TIMOTHY W CAMERON MANAGING DIRECTOR 40.0 0.0 X 612544 0 66355 ROBERT TOOMEY MANAGING DIRECTOR 40.0 0.0 X 463236 0 77045 VICTORIA CUMINGS MANAGING DIRECTOR 40.0 0.0 X 506757 0 48891 CARTER K MCDOWELL MANAGING DIRECTOR 40.0 0.0 X 492708 0 66917 JOHN MAURELLO MD (See Sch. J 457 FN) 40.0 0.0 X 469966 0 76246 8688453 0 791091 73 false true false Cleary Gottlieb Steen Hamilton LL 2000 Pennsylvania Avenue NW WASHINGTON DC 200061801 LEGAL 1225343 Davis Polk Wardwell LLP 901 15th Street NW WASHINGTON DC 20005 LEGAL 604584 Ernst Young LLP P O Box 640382 PITTSBURGH PA 152640382 CONSULTING 535334 Sidney Austin LLP 1 SDearborn Floor 12 CHICAGO IL 60603 Legal 504104 Deloitte Touche LLP PO Box 844708 DALLAS TX 752844708 Consulting 285000 17 0 MEMBER DUES 541900 39668549 39668549 CONFERENCES 541900 16161722 16161722 PUBLICATION SALES 900099 91476 83026 8450 55921747 1164044 1164044 0 244182 244182 0 0 0 0 0 0 0 0 0 0 0 0 0 SHARED SERVICE AGREEMENTS 561000 543362 543362 MISCELLANEOUS REVENUE 900099 114041 114041 657403 57987376 55913297 8450 2065629 257539 0 0 0 9447591 0 18474530 2182879 2388774 1298998 233526 2820760 154876 547452 0 69312 894223 0 995081 1185789 0 4254888 1153815 0 7279936 0 0 2028500 0 SUBSCRIPTION AND BOOKS 630447 BANK CHARGES & CC PROCESSING 315835 PRINTING 114875 DUES & REGISTRATION 145972 462119 57337717 2682432 1851438 14913658 18069354 0 0 2432399 53750 0 0 0 0 0 0 0 0 2407969 3812167 27326293 20199837 6156793 7126456 19530546 20861914 0 0 0 0 0 0 1898043 1404600 50021840 53179679 11039817 10961782 0 0 3498952 4636652 0 0 1159364 837905 0 0 0 0 0 0 10733973 13967371 26432106 30403710 X 23589734 22775969 0 0 0 0 23589734 22775969 50021840 53179679 X 649659 816291 -2279715 X false true X true false false false true 39668549 6620000 1889538 8509538 6743653 1765885 false true X 0 19907361 13403439 6503922 7418932 6796398 622534 7126456 0 EMPLOYEE BENEFITS PAYABLE 9433098 DEFERRED RENT & CONSTR. ALLOWA 4534273 13967371 X 58883667 816291 816291 58067376 80000 80000 58147376 59697432 2359715 2359715 57337717 57337717 SCHEDULE D, PART IV CUSTODIAL ARRANGEMENTS IN ORDER TO FINANCE CERTAIN MEMBER DRIVEN PROJECTS THAT ARE BEYOND SIFMA'S OPERATING BUDGET RESOURCES AND WHICH IMPACT ONLY A SUBSET OF MEMBERS, SIFMA SYNDICATES OUT SUCH PROJECT COSTS TO PARTICIPATING MEMBER FIRMS. THIRD-PARTY PROJECT COSTS (AND ASSOCIATED MEMBER REIMBURSEMENTS) ARE INCLUDED IN SIFMAS BALANCE SHEET. IN 2019, THE SYNDICATED FUNDS COLLECTED FROM MEMBERS AND DISBURSED FOR SUCH SPECIAL PROJECTS TOTALED $2,568,904 AND $2,890,363, RESPECTIVELY. SCHEDULE D, PART X FIN 48 THE ASSOCIATION FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. THE ASSOCIATION IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE, THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. THE ASSOCIATION HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE ASSOCIATION HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. SCHEDULE D, PART XI, LINE 4B RECONCILIATION OF REVENUE ADJUSTMENTS RELATED TO PUBLICATIONS $80,000 SCHEDULE D, PART XII, LINE 2D RECONCILIATION OF EXPENSES POSTRETIREMENT-RELATED CHANGES OTHER THAN NET PERIODIC POSTRETIREMENT BENEFIT COST ($2,354,715) OTHER NONOPERATING EXPENSES ($5,000) ---------- TOTAL OTHER CHANGES: ($2,359,715) =========== true NCSL FOUNDATION FOR STATE LEGISLATURES 7700 EAST FIRST PLACE DENVER CO 80230 742232576 501 (c ) (3) 7500 0 PROGRAM SUPPORT COMMITTEE ON CAPITAL MARKETS REGULATIONINC 134 MOUNT AUBURN STREET CAMBRIDGE MA 02138 300406260 501 (c ) (3) 50000 0 PROGRAM SUPPORT NAPSA 1612 K Street NW 200 WASHINGTON DC 20006 300044497 501 (c ) (3) 18000 0 PROGRAM SUPPORT WOMEN'S INSTITUTE FOR A SECURE RETIREMENT 1001 Connecticut Ave WASHINGTON DC 20036 521997317 501 (c ) (3) 20000 0 PROGRAM SUPPORT UNITED STATES CAPITOL HISTORICAL SOCIETY 200 MARYLAND AVE NE 501c3 WASHINGTON DC 20002 520796820 501 (c ) (3) 10000 0 PROGRAM SUPPORT PREVENT CANCER FOUNDATION 1600 DUKE ST 500 ALEXANDRIA VA 22314 521429544 501 (c ) (3) 10000 0 PROGRAM SUPPORT WASHINGTON TENNIS & EDUCATION FOUNDATION 16TH KENNEDY ST NW WASHINGTON DC 20011 526046504 501 (c ) (3) 7625 0 PROGRAM SUPPORT FORMER MEMBERS OF CONGRESS INC 1401 K ST NW 503 WASHINGTON DC 20005 540883744 501 (c ) (3) 8000 0 PROGRAM SUPPORT Americans for Tax Reform 722 12th Street NW Washington DC 20005 521403587 501 (c ) (4) 25000 0 PROGRAM SUPPORT Competitive Enterprise Institute 1310 L ST NW 7TH FLOOR WASHINGTON DC 20005 521351785 501 (c ) (3) 17500 0 PROGRAM SUPPORT Program on International Financial Systems Inc 134 MOUNT AUBURN STREET CAMBRIDGE MA 02138 822586755 501 (c ) (3) 20000 0 PROGRAM SUPPORT NEW YORK LAW SCHOOL 185 WEST BROADWAY NEW YORK NEW YORK NY 10013 135645885 501 (c ) (3) 10000 0 PROGRAM SUPPORT 11 1 SCHEDULE I, PART I, LINE 2 GRANT MONITORING SIFMA PROVIDES SUPPORT TO CHARITABLE ORGANIZATIONS TO HELP THOSE ORGANIZATIONS FURTHER THEIR EXEMPT PROGRAMS. SIFMA IS NOT A GRANT MAKING ORGANIZATION BUT WILL OCCASIONALLY AWARD A GRANT TO ORGANIZATIONS IN SUPPORT OF A PROJECT THAT ALIGNS ITSELF WITH SIFMA'S MISSION OF PROMOTING AND SUPPORTING A STRONG FINANCIAL INDUSTRY. SIFMA MAINTAINS IN ITS RECORDS THE ACKNOWLEDGMENT LETTER FROM THE RECIPIENT ORGANIZATION AND ANY FOLLOW UP REPORTS ON THE USE OF GRANT FUNDS. X true true X X X X false true false KENNETH E BENTSEN JR PRESIDENT AND CHAIR 1484004 0 925000 0 3612 0 33000 0 44810 0 2490426 0 0 0 RANDOLPH C SNOOK EXECUTIVE VP (THRU 12/2018) 655024 0 400000 0 21381 0 35319 0 33826 0 1145550 0 0 0 IRA D HAMMERMAN EVP/GC (See Sch. J 457 FN) 577124 0 385000 0 22112 0 48250 0 41725 0 1074211 0 0 0 DAVID B KRASNER CFO & CAO 393864 0 275000 0 1932 0 33000 0 41866 0 745662 0 0 0 CHERYL L CRISPEN EXECUTIVE PRESIDENT 352104 0 207500 0 1932 0 33000 0 41745 0 636281 0 0 0 JOSEPH SEIDEL COO 83766 0 0 0 355 0 2545 0 3495 0 90161 0 0 0 SALVATORE CHIARELLI EXECUTIVE VICE PRESIDENT 226600 0 125000 0 1932 0 33000 0 30056 0 416588 0 0 0 JAMIE WALL EXECUTIVE VICE PRESIDENT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 TIMOTHY W CAMERON MANAGING DIRECTOR 419500 0 187500 0 5544 0 33000 0 33355 0 678899 0 0 0 ROBERT TOOMEY MANAGING DIRECTOR 327124 0 132500 0 3612 0 35319 0 41726 0 540281 0 0 0 VICTORIA CUMINGS MANAGING DIRECTOR 326089 0 180000 0 668 0 33000 0 15891 0 555648 0 0 0 CARTER K MCDOWELL MANAGING DIRECTOR 407164 0 80000 0 5544 0 33000 0 33917 0 559625 0 0 0 JOHN MAURELLO MD (See Sch. J 457 FN) 325922 0 120000 0 24044 0 60175 0 16071 0 546212 0 0 0 SCHEDULE J, PART I, LINE 1A FIRST-CLASS TRAVEL PER THE EMPLOYMENT CONTRACT, SIFMA PROVIDED FIRST CLASS AIR TRAVEL WHEN TRAVELING FOR SIFMA BUSINESS FOR KENNETH E. BENTSEN, JR., PRESIDENT AND CEO. THE FIRST-CLASS AIR TRAVEL WAS EXCLUDED FROM TAXABLE COMPENSATION ON THE INDIVIDUAL'S FORM W-2 BECAUSE IT WAS INCURRED FOR BUSINESS REASONS. SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN EVP AND GENERAL COUNSEL PARTICIPATES IN A 457(B)PLAN TO OFFSET 2014 FROZEN PARTICIPATION IN A DEFINED BENEFIT PENSION PLAN. HE RECEIVED A TAXABLE PAYMENT OF $18,500 INCLUDED IN HIS W-2. MANAGING DIRECTOR, Private Client Group ALSO RECEIVED $18,500 AS PART OF THE 457(B) PLAN, INCLUDED IN HIS W-2 WAGES. IN ADDITION, SIFMA CONTRIBUTED $42,425 INTO THE 457(F) PLAN DURING CALENDAR YEAR 2018 FOR BOTH PARTICIPANTS. PART 1, LINE 6 VOLUNTEERS THE NUMBER OF VOLUNTEERS WAS DERIVED FROM SIFMA COMMITTEE PARTICIPANTS PER THE MEMBERSHIP DATABASE. PART III, LINE 4D 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. PART VI, SECTION A, LINE 6 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. PART VI, SECTION B, LINE 11A 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. PART VI, SECTION B, LINE 12C 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. PART VI, SECTION B, LINE 15 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 AND COO HAVE EMPLOYMENT CONTRACTS WHICH WERE 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. PART VI, SECTION C, LINE 19 AVAILABILITY OF DOCUMENTS ANY REQUEST FOR GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS WILL BE PROVIDED UPON REQUEST AT MANAGEMENT'S DISCRETION. PART XI, LINE 9 RECONCILIATION OF EXPENSES POSTRETIREMENT-RELATED CHANGES OTHER THAN NET PERIODIC POSTRETIREMENT BENEFIT COST ($2,359,715) ADJUSTMENTS RELATED TO PUBLICATIONS $80,000 ---------- ($2,274,715) ========= COVID-19 Impact ON MARCH 11, 2020, THE WORLD HEALTH ORGANIZATION DECLARED THE OUTBREAK OF A NOVEL CORONAVIRUS (COVID-19) AS A PANDEMIC. THE SPREAD OF COVID-19 HAS CAUSED SIGNIFICANT VOLATILITY IN U.S. AND INTERNATIONAL MARKETS. THERE IS SIGNIFICANT UNCERTAINTY AROUND THE BREADTH AND DURATION OF BUSINESS DISRUPTIONS RELATED TO COVID-19, AS WELL AS ITS IMPACT ON THE U.S. AND INTERNATIONAL ECONOMIES. The effects of Covid 19 are expected to negatively impact our conference and events business for the near term.