Financial adviser pitches FDIC-insured sweep and reserve diversification to Rangeley selectmen

The Rangeley Board of Selectmen heard a presentation from financial adviser Nikki Haci about alternative ways to manage the town’s cash reserves, including a FDIC-insured premium-rate sweep account she said was paying roughly 3.65% and would be backed by short-term instruments such as CDs and Treasury/agency paper.

Haci, who identified herself as a fiduciary, said her priority is client protection and advised against keeping all municipal funds at one bank. “I work for the client, period,” she said. She described the product as liquid, insured up to bank limits, and without a fixed maturity, and suggested laddering terms and using insured-cash-sweep (ICS) arrangements to reduce risk.

Board members questioned fees and minimums. Haci said the money-market product she discussed had a $100,000 minimum for the money-market variant, and earlier in the exchange she referenced a $1,000 minimum for another premium product; she also disclosed typical compensation as “one tenth of one percent.” A staff member mentioned Franklin had proactively offered a higher rate when the town requested comparisons.

Selectmen emphasized procurement and policy concerns. Members said they want to ensure the town’s investment policy, bid process and conflict disclosures are followed before moving funds, and that staff should return with written options and comparisons when the account goes out to bid. No formal change to where reserves are held was made at the meeting.