{
  "url": "https://openlegislation.uk/local-government-pension-scheme-regulations-1995/regulation-L5",
  "json_url": "https://openlegislation.uk/local-government-pension-scheme-regulations-1995/regulation-L5.json",
  "legislation": "uksi/1995/1019",
  "legislation_title": "The Local Government Pension Scheme Regulations 1995",
  "legislation_url": "https://openlegislation.uk/local-government-pension-scheme-regulations-1995",
  "path": "regulation/L5",
  "kind": "regulation",
  "number": "L5",
  "heading": "Use and investment of pension fund’s money",
  "text": "(1) Any money forming part of the pension fund maintained by an administering authority (“fund money”) that is not for the time being required to meet payments to be made out of the fund under these regulations shall be invested by the authority.\n(2) An administering authority may vary the manner in which any fund money is for the time being invested by them under this regulation.\n(3) In the discharge of their functions under this regulation an administering authority shall have regard—\n(a) to the need for diversification of investments of fund money,\n(b) to the suitability of investments of any description of investment which they propose to make and of any investment proposed as an investment of that description, and\n(c) to proper advice, obtained at reasonable intervals.\n(4) Paragraph (3)(c) does not apply where functions under this regulation are lawfully discharged, under arrangements made under section 101 of the Local Government Act 1972 or otherwise, by an officer who is competent to give proper advice.\n(5) For the purposes of this regulation and of regulations L4(1)(c) and L6, investment includes—\n(a) any contract entered into in the course of dealing in financial futures and traded options,\n(b) appropriation by the administering authority for use as a loan for any purpose for which they have a statutory borrowing power (including power to borrow under an instrument made under a statute),\n(c) any contract the effecting of which constitutes the carrying out of insurance business within class VII in Schedule 1 to the Insurance Companies Act 1982 with a person—\n(i) who is permitted under that Act to carry on such business, or\n(ii) who, as an insurance company the head office of which is in a member State, is permitted under the law of a member State (other than the United Kingdom) to carry on insurance business of a corresponding class,\n(d) a permitted stocklending arrangement, and\n(e) entering as a limited partner into a partnership.\n(6) For the purposes of this regulation—\n“limited partner” means a person who is not liable for the debts or obligations of a partnership beyond the amount contributed at the time of entering into that partnership;\n“partnership” means a partnership whose purpose is to invest in shares in or securities of companies which at the date of purchase by the partnership are normally not quoted on a recognised stock exchange;\n“proper advice” means the advice of a person who is reasonably believed by the administering authority to be qualified by his ability in and practical experience of financial matters (including where appropriate an officer of theirs);\n“recognised stock exchange” has the meaning given in section 841(1) of the Income and Corporation Taxes Act 1988;\n“stocklending arrangement” means an arrangement such as is mentioned in section 129(1) or (2) of the Income and Corporation Taxes Act 1988 and such an arrangement is a permitted arrangement if it complies with the provisions of regulation 5.58 and 5.60 of Section L of the Financial Services (Regulated Schemes) Regulations 1991, taking—\n(a) the reference in paragraph 1c(iii) of regulation 5.58 to Guidance of the Board as a reference to Guidance Release 4/91 issued by the Securities and Investments Board in June 1991, and\n(b) any reference to the trustee as a reference to the administering authority;\n“traded option” means an option which is for the time being quoted on a recognised stock exchange or on the London International Financial Futures Exchange.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "1972 c. 70."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "1982 c. 50."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/1995/1019/regulation/L5",
    "retrieved_at": "2026-10-29T13:11:15.645770+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}