Paragraph 24 Delegation of investment management
The Council may appoint as the investment manager for the Charity a person who it is satisfied after inquiry is a proper and competent person to act in that capacity and who is either:
an individual of repute with at least 15 years' experience of investment management who is an authorised person within the meaning of the Financial Services Act 1986; or
a company or firm of repute which is an authorised or exempted person within the meaning of that Act otherwise than by virtue of section 45(1)(j) of that Act.
The Council may delegate to an investment manager so appointed power at his discretion to buy and sell investments for the Charity on behalf of the Council in accordance with the investment policy laid down by the Council. The Council may only do so on terms consistent with this clause.
Where the Council makes any delegation under this clause it shall:
inform the investment manager in writing of the extent of the Charity’s investment powers;
lay down a detailed investment policy for the Charity and immediately inform the investment manager in writing of it and of any changes to it;
ensure that the terms of the delegated authority are clearly set out in writing and notified to the investment manager;
ensure that it is kept informed of, and review on a regular basis, the performance of its investment portfolio managed by the investment manager and on the exercise by him of his delegated authority;
take all reasonable care to ensure that the investment manager complies with the terms of the delegated authority;
review the appointment at such intervals not exceeding 24 months as it thinks fit; and
pay such reasonable and proper remuneration to the investment manager and agree such proper terms as to notice and other matters as the Council shall decide and as are consistent with this clause provided that such remuneration may include commission fees and/or expenses earned by the investment manager if and only to the extent that such commission fees and/or expenses are disclosed to the Council.
Where the Council makes any delegation under this clause it shall do so on the terms that:
the investment manager shall comply with the terms of his delegated authority;
the investment manager shall not do anything which the Council does not have the power to do;
the Council may with reasonable notice revoke the delegation or vary any of its terms in a way which is consistent with the terms of this clause; and
the Council shall give directions to the investment manager as to the manner in which he is to report to it all sales and purchases of investments made on its behalf.
The Council may:
make such arrangements as it thinks fit for any investments of the Charity or income from those investments to be held by a corporate body which is incorporated in England or Wales (or has established a branch or a place of business in England or Wales) as the Charity’s nominee; and
pay reasonable and proper remuneration to any such nominee.