(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 obtain professional investment management which includes, at a minimum, the following services:

   1. (A) Investment advising and reporting including, but not limited to:

(i) Pension plan prudent asset allocation advice;

1. (ii) Choosing independent investment managers or funds; and

   1. (iii) Reporting the results of the investment managers versus their benchmark at least quarterly;

   2. (B) Investment management including, but not limited to:

      1. (i) Investing plan assets on a plan-specific basis which pertains to the stated asset allocation designated by the local pension board with the assistance of the investment manager; and
      2. (ii) Regular reporting of results through the recognized investment management and trust arrangement; and
   3. (C) Clear statement of fee structure within the guidelines of Arkansas Code §§ 24-11-410 and 24-11-805.