The Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Amendment Regulations 2003

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Amendment Regulations 2003.

(2) These Regulations shall come into force on 31st March 2003.

(3) These Regulations extend to Scotland only.

Amendment of Regulations

2.  The Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 1998 (“the principal Regulations”)(1) are amended in accordance with regulations 3 to 5 of these Regulations.

Statement of investment principles

3.  In regulation 9A(2) of the principal Regulations–

(a) insert a new paragraph after paragraph (3) as follows:–

“(3A) A statement published after 30th June 2003 must also–

(a) state the extent to which the administering authority comply with the ten principles of investment practice set out 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)”(3); and

(b) give the reasons for not complying where they do not do so.”; and

(b) in paragraph (4), for “paragraph (2)” substitute “paragraphs (2) and (3A)”.

Schedule 1 – Limits on investments

4.—(1) In paragraph 10 of Part 1 of Schedule 1, for “All insurance contracts” substitute “Any single insurance contract”.

(2) In Part III of Schedule 1, for the definition of “open-ended investment company” substitute–

““open-ended investment company” means an open-ended investment company as defined in section 236 of the Financial Services and Markets Act 2000(4) which is an undertaking for collective investment schemes to which the Council Directive No. 85/611/EEC(5) co-ordinating the laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities, as amended, applies;”.

Transitional provision

5.  Nothing in these Regulations requires an administering authority which has published a statement under regulation 9A of the principal Regulations (as in force immediately before the date on which these Regulations come into force) to prepare a new statement but they must revise the statement which they have published so as to include the matters referred to in regulation 9A(3A) of the principal Regulations and publish the revised statement by 30th June 2003.

ANDREW P KERR

A member of the Scottish Executive

St. Andrew’s House. Edinburgh

5th March 2003