Management of pension fund

Terms of appointment of investment managers7

1

Investment managers must, if appointed, be appointed on the terms set out in paragraphs (2) to (7).

2

The administering authority must be able to terminate the appointment by not more than one month’s notice.

3

The investment manager must report to the administering authority at least once every three months on the action he has taken for them.

4

The investment manager must comply with all the administering authority’s instructions.

5

In managing the fund the investment manager must take into account—

a

that fund money must be invested in a wide variety of investments,

b

the suitability of those types of investment for the fund, and

c

the suitability of any particular investment of that type.

6

But paragraph (5)(a) does not apply where the investment manager only manages part of the fund and the terms of his appointment provide that it does not apply.

7

The investment manager must not make investments which would contravene regulation 11 or Schedule 1.

8

In determining the investment manager’s terms of appointment, the administering authority must take proper advice.