Investment managers

9 Terms of appointment of investment managers
1 An investment manager must be appointed on the terms set out in paragraphs (2) to (7).
2 The administering authority must be able to terminate the appointment by giving not more than one month’s notice.
3 The investment manager must report to the authority at least once every three months on the action the investment manager has taken on behalf of the authority.
4 The investment manager must comply with all of the authority’s instructions, except in circumstances permitted by the investment manager’s terms of appointment.
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 for the fund of particular types of investment, or of any particular investment; and
(c) the administering authority’s statement of investment principles.
6 But paragraph (5)(a) does not apply where the investment manager only manages part of the fund and the terms of the investment manager’s appointment provide that it does not apply.
7 The investment manager must not make investments which would contravene the authority’s statement of investment principles or regulation 14.
8 In determining the investment manager’s terms of appointment, the authority must take proper advice.