Explanatory note

These regulations amend the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998. They add a provision to the regulation requiring each administering authority to publish a written statement of investment principles. The new provision requires that such statement must set out the extent to which the administering authority comply with the ten principles of investment practice contained in the document published in April 2002 by CIPFA, the Chartered Institute of Public Finance and Accountancy, and called “CIPFA Pensions Panel Principles for Investment Decision Making in the Local Government Pension Scheme in the United Kingdom (Guidance note issue No. 5)”. Each administering authority must publish, by no later than 30th September 2002, their policy on the extent to which they comply with the ten principles and give their reasons where they do not comply.

The Guidance Note can be purchased from CIPFA, 3 Robert Street, London WC2N 6RL, tel. 020 7543 5605. The publication costs £50 to members of the public, £25 to local authorities and £12.50 to an administering authority.

The ten investment principles were issued by the Government in October 2001 in response to proposals in the Myners Review of Institutional Investment in the United Kingdom, issued in March 2001. Further information about these can be obtained from HM Treasury Public Enquiry Unit. tel: 020 7270 4558 or from HM Treasury’s web site www.hm-treasury.gov.uk.