LGPS pool calls for legislation to provide certainty about reforms
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One of the eight asset pools for the Local Government Pension Scheme has called on the government to legislate to provide certainty.
In response to the government’s ‘Fit for the future’ consultation from November last year, LGPS Central has said it is committed to working to the government’s “challenging” timescales.
However, it warned that without greater certainty, there could be a delay: “We will... need government to work with us to deliver the certainty we require, including through legislation, if delay is to be avoided.”
However, it warned that without greater certainty, there could be a delay: “We will... need government to work with us to deliver the certainty we require, including through legislation, if delay is to be avoided.”
The pool revealed on Tuesday how it plans to comply with the government proposals that tighten existing pooling requirements. Although it is “not actively seeking” mergers with other pools, it said it is “open to welcoming new partner funds”.
Chief executive Richard Law-Deeks said: “I am incredibly proud of the collaborative efforts of the team at LGPS Central and our partner funds, who have worked tirelessly to develop a credible plan. We recognise that ‘Fit for the Future’ represents a significant change for the LGPS, but we have come together with a shared focus on delivering a solution that meets the government’s ambition and enables our partner funds to deliver the best outcomes for their members.”
Together with its current partner funds, LGPS Central will review its governance arrangements.
Together with its current partner funds, LGPS Central will review its governance arrangements.
The pool has numerous permissions by the Financial Conduct Authority but, as assets under management grow, “we will likely become an Enhanced Firm for regulatory purposes, and we are already considering what that will mean, although it is several years away”.
The Wolverhampton-based company will create an investment solutions team to comply with a requirement to offer implementation of funds’ investment strategies and advice.
It will recruit “a small number of additional colleagues” and invest in tools and technology as partner funds’ assets are transferred sooner than the pool’s current 2028 plan, expanding on the 87 staff it currently employs. The pool currently manages £45bn for its partner funds.
LGPS Central has outlined a phased approach to transferring all listed assets and granting it full delegated authority over illiquid investments via discretionary agreements.
The Wolverhampton-based company will create an investment solutions team to comply with a requirement to offer implementation of funds’ investment strategies and advice.
It will recruit “a small number of additional colleagues” and invest in tools and technology as partner funds’ assets are transferred sooner than the pool’s current 2028 plan, expanding on the 87 staff it currently employs. The pool currently manages £45bn for its partner funds.
LGPS Central has outlined a phased approach to transferring all listed assets and granting it full delegated authority over illiquid investments via discretionary agreements.
Does the LGPS need legislation as it embarks on large-scale investment and reorganisation?
