Decision details

The Committee considered a report on the impact of the implementation of the Markets in Financial Instrument Directive 2014/65 and in particular the risk to the administering authority of becoming a retail client on 3rd January 2018 which had also been the subject of a recent training workshop.

It was noted that while LPP Investments would opt up for the majority of investments the Lancashire County Pension Fund was also required to opt up to elected professional status itself in relation to a number of legacy investments which were still managed directly by the Fund.

Resolved:

1.  That the potential impact on the investment strategy of the administering authority becoming a retail client with effect from 3rd January 2018, as set out in the report presented, is noted.

2.  That the immediate commencement of applications for elected professional client status with all relevant institutions in order to ensure the administering authority can continue to implement an effective investment strategy is approved.

3.  That in electing for the professional client status specified at 1 above the Committee acknowledge and agree to forgo the protections available to retail clients as set out in Appendix 'A' to the report presented.

4.  That the Head of Fund be given delegated authority for the purposes of finalising the applications and determining the basis of the application as either full or single service.