2003 No. 2719
The Local Government Pension Scheme (Management and Investment of Funds) (Amendment) Regulations 2003
Made
Laid before Parliament
Coming into force
The Secretary of State, in exercise of the powers conferred on him by section 7 of the Superannuation Act 19721 and of all other powers enabling him in that behalf, after consultation with such associations of local authorities as appeared to him to be concerned, the local authorities with whom consultation appeared to him to be desirable and such representatives of other persons likely to be affected by the Regulations as appeared to him to be appropriate, hereby makes the following Regulations:
Citation, commencement and extent1
1
These Regulations may be cited as the Local Government Pension Scheme (Management and Investment of Funds) (Amendment) Regulations 2003.
2
These Regulations shall come into force on 19th November 2003.
3
The Regulations extend only to England and Wales2.
Amendment of Regulations2
The Local Government Pension Scheme (Management and Investment of Funds) Regulations 19983 shall be amended in accordance with regulation 3 of these Regulations.
Restrictions on investments3
1
In regulation 11, for paragraph (2) substitute—
2
Subject to paragraph (2A), the percentages set out in Column 1 of Part I are the limits on the amount of each description of investment listed next to those percentages.
2A
An administering authority may decide to increase those limits up to the limits set out in Column 2 of Part I (where a percentage is specified in that Column) in accordance with the requirements of regulation 11A.
2
After regulation 11 insert—
Requirements for increased limits11A
1
An administering authority which decides to increase limits under regulation 11(2A) must comply with the requirements of this regulation.
2
They must have taken proper advice.
3
They must take account of the factors set out in regulation 9(3).
4
The decision must specify—
a
the description of investment to which it applies;
b
the limit on the amount of the investment;
c
the reason for that decision;
d
the period for which the decision will apply;
e
if the authority intend to review the decision before the end of the period in (d), the date when the decision will be reviewed; and
f
that the decision complies with these Regulations.
5
Where the period for which the decision will apply comes to an end, the limits will be those set out in Column 1 of Part I unless before the end of that period the administering authority reviews the decision in accordance with this regulation.
6
A decision following a review to continue to use limits increased under regulation 11(2A), whether or not the increased limits have been altered, must—
a
take account of the matters set out in paragraphs (2) and (3); and
b
specify the matters set out in paragraph (4).
7
Before a decision under regulation 11(2A) or paragraph (6) can take effect, the administering authority must revise and publish the written statement of investment principles which they are required to maintain under regulation 9A to include the matters specified in paragraph (4).
3
For Part I of Schedule 1 substitute Part I as set out in the Schedule to these Regulations.
Signed by authority of the Secretary of State
SCHEDULE
PART I
Column (1) | Column (2) | |
---|---|---|
Limits under regulation 11(2) | Increased limits under regulation 11(2A) | |
| 1% | 5% |
| 2% | 5% |
| 5% | 15% |
| 10% | – |
| 10% | 15% |
| 10% | – |
| 10% | – |
| 15% | – |
| 25% | 35% |
| 25% | 35% |
| 25% | 35% |
| 25% | 35% |
| 25% | – |
(This note is not part of the Regulations)