Download (Attachment: 2)COMISAGENDA ITEM 4

TO THE:
CHAIR AND MEMBERS
AGENDA ITEM 4
OF THE:
TEESSIDE PENSION FUND AND INVESTMENT PANEL
FOR:
13 JUNE 2007
TRUSTEE TRAINING
1.
PURPOSE OF THE REPORT
1.1
To update Members on the current situation regarding trustee training, in
light of the requirements of the Myners' Review of Institutional Investment.
2.
RECOMMENDATION
2.1
That Members consider whether attendance at the training courses outlined
in Section 5 would be beneficial in meeting their own aspirations for a greater
understanding of the issues associated with their role as trustee.
3.
FINANCIAL IMPLICATIONS
3.1
Costs associated with attendance would be a charge to the management
expenses of the Fund and accommodated within the agreed budget.
4.
BACKGROUND
4.1
The Investment Panel on 1 March 2002 agreed a report on changes to the
Statement of Investment Principles in order to ensure compliance with the
Principles proposed by the Myners' Review of Institutional Investment.
4.2
The 10 Principles proposed by Myners covered a range of issues. The first
Principle, "Effective Decision Making", states:
Decisions should only be taken by persons or organisations with the
skills, information and resources necessary to take them effectively.
Where trustees elect to take investment decisions, they must have
sufficient expertise and appropriate training to be able to evaluate
critically any advice they take.
Trustees should ensure that they have sufficient in-house staff to support
them in their investment responsibilities.
1
Trustees should assess whether they have the right set of skills, both
individually and collectively, and the right structures and processes to
carry out their role effectively.
4.3
The position of an elected Member, or other representative acting as a
trustee on the Investment Panel, differs from that of a trustee of a private
sector scheme. Members are not strictly trustees, as the Local Government
Pension Scheme (LGPS) does not have a Trust Deed and is regulated by
Statute. Although those entrusted to make statutory decisions under the
LGPS are, in many ways, required to act in the same way as trustees in terms
of their duty of care, they are subject to a different legal framework and to all
the normal duties and responsibilities of local authority councillors.
4.4
There is no mandatory requirement for Members to undergo training.
5.
TRUSTEE TRAINING
5.1
Over recent years the Investment Panel has approved a number of training
opportunities for Members.
5.2
The 2007 Local Government Pension Scheme (LGPS) Trustees’ conference has
been arranged for 18th/19th October at the Marriott Hotel, York. No details are
available at the moment, but the conference theme is “2008 and Beyond” and is
therefore likely to feature the new look LGPS. Cost of attendance is £399 plus
VAT.
5.3
A number of Members have attended the Employers’ Organisation course
“Fundamentals”, run over three separate days in the autumn. The Fundamentals
course may be ideal for new Members of the Investment Panel.
5.4
Appendix A includes details of the course, including the agenda for each of the
three days. The cost of attending each day is £160 plus VAT.
5.5
It has previously been agreed that the costs associated with relevant training
should be met by the Fund. Members wishing to attend should make their own
travel and accommodation arrangements (where applicable) through the relevant
employer at the rates determined by that employer. Attendance should be
arranged through the Head of Investments.
CONTACT OFFICER:
PAUL SLOCOMBE
DIRECTOR OF RESOURCES
FRED GREEN
HEAD OF INVESTMENTS
& TREASURY MANAGEMENT
729025