Investment managers
Choice of investment managers8
1
Instead of managing and investing fund money for itself, an administering authority may appoint one or more investment managers to manage and invest fund money, or any part of such money, on its behalf.
2
But the authority may only appoint an investment manager if the authority complies with paragraphs (3) to (6).
3
The authority must reasonably believe that the investment manager’s ability in and practical experience of financial matters makes that investment manager suitably qualified to make investment decisions for it.
4
The investment manager must not be an employee of the authority.
5
The authority must be satisfied—
a
that the fund, or the relevant part of it, is managed by an adequate number of investment managers; and
b
that where there is more than one investment manager, the value of fund money to be managed by any one of them will not be disproportionate in comparison with the value of fund money managed by other investment managers.
6
The authority must have taken proper advice in relation to the appointment.