TAMPA, Fla., April 22, 2013 (GLOBE NEWSWIRE) -- Jerry Ford, President FAI Capital Management ('FAI'), announced that Florida would become just the second state to make available the Federally Insured Cash Account ('FICA®') for Governmental Units. FICA is a leading cash management product developed by StoneCastle Cash Management, LLC. The Florida FICA program will allow Florida government funds managers to deposit funds into a carefully-screened network of hundreds of Federal Deposit Insurance Corporation (FDIC) insured banks via a single convenient account. Public funds deposited in the program will be fully secured by the full faith and credit of the United Stated Government1 and potentially earn a competitive yield. Florida FICA is now eligible for Florida Governmental Units upon consultation and extensive review with the Florida Division of Treasury.2
According to Ford, "Florida FICA will enable public funds managers to save time and money and, most importantly, to keep taxpayer funds safe. As a result of continuing economic uncertainty and concern over the safety of investment vehicles once deemed secure, governmental fund managers have become more conservative when investing cash balances. The Florida FICA program provides public funds managers the safety and security of FDIC insurance, the convenience of daily deposit/weekly liquidity, and a competitive yield. Florida FICA is a true win for local governments who are tightening their belts and stretching tax dollars."
Steve Rotella, CEO of StoneCastle Cash Management said, "We are privileged to be partnering with FAI Capital Management to give Florida public entities the opportunity to safely and securely increase the potential return on their cash reserves. Many public funds managers across Florida are experiencing low yields on investments due to historically low interest rates. The Florida FICA program is a welcome option for counties looking for safe investments that provide competitive returns for taxpayers."
The Florida FICA program offers local governments a competitive yield compared to investments with similar maturities, such as money market funds, U.S. treasury bills, commercial paper, certificates of deposit, and time deposits.
The minimum amount required to open a Florida FICA account is $500,000 and the current maximum amount is $15,000,000 per depositor. The program offers daily deposit capability and weekly liquidity with penalty-free withdrawals for public funds managers.
If you are a Florida Governmental Unit looking for a unique combination of maximum FDIC insurance and a competitive yield please call 813-874-6621 or contact Jerry Ford at Ford.Jerry@fai-cm.com or Jonathan Ford at Ford.Jon@fai-cm.com.
All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. FICA® satisfies the FDIC's requirements for agency pass-through deposit insurance coverage.
1 FICA is not a member of the FDIC, but the banks where your money is deposited are FDIC members. The FDIC is an independent agency of the U.S. government that protects the funds depositors place in FDIC insured institutions, up to $250,000 per institution. FDIC deposit insurance is backed by the full faith and credit of the U.S. government. If you have cash at any depository institution that is in the FICA network then you may not receive full FDIC insurance coverage on your deposits at those institutions. Funds may be submitted for deposit only after a depositor enters into a FICA agreement, which contains complete information regarding the governing terms of the account (including liquidity, fees, terms, etc.). Access to fund is limited to once a week.
2 This is not an endorsement of or a solicitation for FICA®.
StoneCastle Cash Management, LLC, an affiliate of StoneCastle Partners LLC, is an investment adviser registered with the United States Securities and Exchange Commission. For more information regarding the firm, please see its Form ADV Parts 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training.
FAI Capital Management is not affiliated with StoneCastle Partners, LLC or StoneCastle Cash Management, LLC. FAI Capital Management is an investment advisor registered with the United States Securities and Exchange Commission. For more information regarding the firm, please see its Form ADV Part 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training.
FICA® is a service mark of StoneCastle Cash Management, LLC.