The Local Authorities (Contracting Out of Investment Functions) Order 1996

Investment functions

5.  For the purposes of article 4, the functions of an authority which consist of, or relate to the investment of any sum (“the investment”) include the functions of —

(a) deciding the manner in which the sum concerned is for the time being to be invested, and the identity of any bank, building society or other person or body with or in whom the investment is to be made;

(b) entering into a contract in the course of making, disposing of, or otherwise dealing with, the investment;

(c) reaching agreement as to the terms and conditions of the investment, including any requirements in relation to any consideration in respect of the investment, or in relation to the repayment or redemption of the investment;

(d) deciding the manner of disposal of the investment, and the time when, and terms and conditions on which, the disposal of the investment is to be undertaken;

(e) deciding, in making any decision relating to the investment, on the need for diversification of all investments made, or to be made, by the authority;

(f) preparing and having custody of any documents relating to the investment; and

(g) making and recording any payments required to be made in making the investment, and receiving and recording sums falling due to the authority under the investment, or on the repayment, redemption or disposal of, the investment.