Decision details

The Committee considered a report setting out details of a consultation on replacing the Local Government Pension Scheme (Investment and Management of Funds) Regulations. A copy of the consultation document was set out at Appendix ‘A’. It was proposed that the new regulations, the draft of which was set out at Appendix ‘B’, would come into force on 1 April 2016.

George Graham, Director, LCPF, reported that, overall, the proposals were to be welcomed but that there were two areas of concern as follows:

-  The reserve power of intervention by the Secretary of State which is intended to deal with Funds which refuse to pool their assets is drawn too widely and a separate debate should take place if this remains the case;

-  Proposals which would restrict the ability to reflect Responsible Investment issues in decisions.

Appendix ‘C’ set out, for approval, the proposed response by the Fund to the consultation taking account of the two areas of concern set out above.

It was agreed that the response on Page 55 of the agenda pack (4th bullet point) be strengthened prior to submission. It was also requested that a session on derivatives be the subject of one of the future monthly workshops for Committee and Local Pension Board Members.

Resolved: - That the draft response to the consultation on the draft Local Government Pension Scheme Investment Regulations, as set out at Appendix ‘C’ to the report now presented, be approved, subject to the re-drafting of the appropriate section of Page 55 as set out above.