The Local Government Superannuation (Investments) Regulations 1993

Explanatory Note

(This note is not part of these Regulations)

These Regulations amend regulation P3 of the Local Government Superannuation Regulations 1986 (use and investment of local government superannuation fund’s moneys). They permit local authorities, as part of the investment of fund moneys, to enter into stocklending arrangements subject to a limit of 25 per cent of the value of the fund and compliance with certain provisions in the Financial Services (Regulated Schemes) Regulations 1991 and Guidance Release 4/91 issued by the Securities and Investments Board. Copies of the 1991 Regulations and the Guidance Release are available from the Securities and Investment Board, Gavrelle House, 2–14 Bunhill Road, London EC1Y 8RA.

These Regulations also amend regulation P3, with effect from 1st January 1993. They are consequential upon the implementation by the Banking Coordination (Second Council Directive) Regulations 1992 of the Second Council Directive 89/646/EEC on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions (OJ No. L386, 30.12.89, p.1). The current limit on the amount of investments which may be held in the form of a deposit with certain European institutions is removed, and the category of European institutions which may be an investment manager of superannuation funds is widened.

A minor amendment is also made to the definition of “investment” for the purposes of regulations P2 (management of superannuation fund) and P3.