(a)

1. (1) If the Arkansas Fire and Police Pension Review Board determines that a local plan does not meet the minimum asset management standards as required by law, it will notify the local plan and sponsoring municipality of its determination and identify the steps necessary to comply with the minimum standards established by law.

2. (2) The board will also require the local plan to establish a written investment policy which must address the following areas:

   1. (A) Statement of fiduciary responsibility;
   2. (B) Liquidity;
   3. (C) Volatility;
   4. (D) Asset allocation guidelines;
   5. (E) Prohibited investments;
   6. (F) Performance goals;
   7. (G) Responsibilities of the investment consultant;
   8. (H) Responsibilities of the investment managers;
   9. (I) Selection process for investment managers;
   10. (J) Investment manager performance review; and
   11. (K) Annual review of investment policy.