Decision details

(Exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act, 1972.  It is considered that in all the circumstances of the case the public interest in maintaining the exemption outweighs the public interests in disclosing the information)

The Committee considered a report on the final proposals in relation to the creation of a partnership between the Lancashire County Pension Fund and the London Pension Fund Authority. 

The Committee's attention was drawn to the following key issues in relation to the establishment of the "Local Pensions Partnership Limited" (LPPL):

·  The financial viability of the LPPL including the conclusions of a detailed review undertaken by PricewaterhouseCoopers;

·  The loan facility with LPPL;

·  Governance issues and key risks including the views of DAC Beachcroft LLP on the legal agreements required to give effect to the partnership arrangement;

·  The Financial Conduct Authority's authorisation;

·  The remuneration policy for senior staff in LPPL;

·  The Council's short and long term treasury management arrangements;

·  The ICT agreement;

·  The views of the Investment Panel; and

·  Revised terms of reference and delegation arrangements for the County Council consequent upon the establishment of LPPL.

Members gave detailed consideration to the report and to the views on the proposed partnership as presented by officers, the Investment Panel and representatives of PricewaterhouseCoopers and DAC Beachcroft LLP. George Graham, LPPL Chief Finance Officer & Managing Director - Administration Business designate, also responded to questions raised by Members.

It was noted that the Full Council would need to approve the LPPL proposal.  The Committee agreed that the Full Council should be recommended to support the proposals as set out in the report including the conditions precedent which must be in place prior to the commencement of the joint venture. 

Resolved: 

(i)  That the reports provided at Appendices 'A' 'B' and 'D' on the financial viability and the proposed legal/governance arrangements in relation to LPPL, identifying the risks and opportunities which the proposed joint venture involves be noted.

(ii)  That the verbal updates provided at the meeting by the Investment Panel on the proposals be noted.

(iii)  That the recommendations including the conditions precedent, as set out in the report now presented, be approved.