Issue - meetings
LGPS Latest Development and Update
Meeting: 31/07/2017 - Pension Board (Item 7)
7 LGPS Latest Development and Update PDF 362 KB
Minutes:
Ms Tobun Investments and Treasury Manager presented the report and the Board noted the following matters:
- New MiFID II rules will be in force January 2018 which will render local authorities as retail investment clients and have impacts on some financial instruments that they may wish to purchase. Additionally direct access to fund managers would be lost. However the LGA had lobbied FCA to consider fund trustees to comprise a collective of members and officers which administer pension funds to secure that these organisations may retain their professional status and so mitigate the detriment that would otherwise be imposed.
- A High Court judicial review of the section on boycotting foreign nations and the UK defence industry in the DCLG statutory guidance on preparing and maintaining an investment strategy statement published in September 2016 ruled it was unlawful.
- The update on the Investment Code of Transparency as presented in the report.
- Establishment of the London CIV was progressing on time. Two funds had been launched with two more expected to launch later in the year. Additionally a number of members of staff had been appointed.
The Board discussed the following:
- In regard to MiFID II, that there had been concerns around the adequacy of (Pensions Committee) member training and hear that CPfA was looking at ways of achieving appropriately trained members including requiring them to answer a set of questions.
- In regard to CIVs, that a review would be carried out in July 2017. A draft report would not be circulated to the Council for consultation and the Board noted that should the CIV wish to change style or planit would need to consult. The Chair asked that further information be reported to the Board at a future meeting.
RESOLVED
That the discussion covering the following matters be noted
1. FCA MiFID II Policy Statement on LGPS Classification;
2. Judicial review on DCLG statutory guidance;
3. LGPS Investment Code of Transparency and
4. London Collective Investment Vehicle (CIV).