Agenda item

The minutes of the meeting held on the 24^th February were agreed.

The Director of Finance (henceforward referred to as “Director”), updated the Committee concerning the London Collective Investment Vehicle (CIV). It was noted that LBB were currently still not a member of the CIV. The CIV is awaiting regulation by the FCA (Financial Conduct Authority). Individual councils have contributed £75k to date as part of joining the CIV and it is expected that the cost of joining the CIV (if LBB did decide to join) could be offset by reduced fund mangers’ fees, but this was currently unclear. It is anticipated that a formal FCA regulation will be finalised this summer, and the Committee would be updated in due course. 

The Director referred to the matter of Pensions Freedom that had been part of the recent budget, explaining that the impact of this was that individuals now had the right to transfer to private pension schemes, and this had raised some concerns. It was noted that this applied to the LBB pension scheme, but did not apply to NHS schemes.

The Director referred to the previous consultation paper on the issue of “Active” v “Passive” investments and this matter was not progressed further by the Government prior to the elections. The Committee would be kept informed of developments. 

The Director gave the Committee an update on the “Parallel Fund”. It was noted that this was a long term investment, and the allocated investment was £2.7m. The returns had been good so far, and it was hoped that this trend would continue. 

Tracey Pearson updated the Committee concerning the Local Pensions Board. The Committee were informed that the establishment of the LPB had been agreed at the meeting in February 2015. There had not been a good response to the canvassing for Board Members, and there had been only four responses; there had been no responses for Employer representatives. The matter was being raised at the GP&L meeting on the 27^th May 2015, where a change to the terms of reference would be sought. Meetings had taken place with three of the four proposed members, and LBB would be meeting with the fourth person on the 8^th June 2015. The GP&L Committee would be asked to agree changes to the Terms of Reference, and to agree the nominations for the Board.

Members referred to potential issues of non-attendance at meetings and the importance of appointed members of the Local Pension Board ensuring they attend the meetings.

A Member asked if the nominees were of sufficient calibre. Ms Pearson responded that it was difficult even to find sufficient numbers of people that were interested. It was noted that the four candidates were of varying backgrounds and experience, and it was anticipated that each would bring different qualities and experience to the Board. It was important to note that the LPB had to be established within statutory deadlines.

A Member enquired if the PISC had the power to veto nominees if required; the answer to this was no—the power of veto rested with the GP&L Committee.

RESOLVED:

(1) that the minutes of the meeting held on the 24^th February 2015 be agreed

(2) that the matters relating to the general update from the Director be noted and further updates will be provided at future meetings