To consider the recommendation(s) of the Investment and Pension Fund Committee (2 December 2016) relating to the approval of the Business Case for the Brunel Pooling Partnership, circulated previously for the attention of Members at this meeting; The report of the County Treasurer (CT/16/105) being available at http://democracy.devon.gov.uk/ieListDocuments.aspx?CId=187&MId=314&Ver=4 and exempt information available to Members only in line with the Councils Access to Information Rules.
Minutes:
(Councillors Davis and Mathews declared Disclosable Pecuniary Interests in this matter by virtue of being a member of the Devon LGPS and in receipt of a widowers pension respectively, and withdrew from the meeting during its consideration).
The Council considered the recommendations of the Investment & Pension Fund Committee held on 2 December 2016 (Minute 30 thereof) relating to the adoption by the County Council of the final Business Plan for the establishment of the Brunel Pooling Partnership.
The Investment & Pension Fund Committee had considered the Report of the County Treasurer (CT/16/105), which had been made available previously for the attention of all Members at this meeting, outlining the process of preparation and content of the full Business Case; to establish a company called Brunel Pension Partnership Ltd (Brunel company or BPP Ltd) regulated by the Financial Conduct Authority (FCA) and incorporating governance arrangements for client side oversight and contract management. The Business Case had been developed as summarised in that Committee’s Minutes and set out more fully in the County Treasurer’s Report and had been subject to review by the Finance (s151) and Monitoring Officers of each of the 10 constituent administering authorities throughout the process. It had subsequently been endorsed by the current Shadow Oversight Board, comprising the Chairmen of the 10 funds. It [the business case] had been prepared by Officers of the 10 administering authorities, supported by professional expertise from PWC (operational and financial support), Osborne Clark (legal support), Alpha (FCA expertise), JLT (project support) and Bfinance (investment advice).
Councillor Gilbert, Chairman of the Investment & Pension Fund Committee, MOVED and Councillor Edgell SECONDED that the recommendations at Minute 30 of that Committee be approved and:
(a) that, in its capacity as the Administering Authority for the Devon Pension Fund and having received and reviewed the recommendation of the Investment & Pension Fund Committee and the Business Case submitted to it, the County Council resolve to enter into investment pooling as part of the Brunel Project with respect to the Devon Pension Fund’s investments;
(b) that such resolution is made on and subject to the following terms and conditions:
(i) that the Brunel Pension Partnership investment pool be developed, funded and implemented substantially in accordance with the terms and provisions described in the Business Case considered by the Investment & Pension Fund Committee, and more particularly:
(ii) that a Financial Conduct Authority (FCA) regulated company to be named Brunel Pension Partnership Limited be established and operated with all necessary and appropriate arrangements as to its ownership, structure, governance and services capability;
(iii) that a new supervisory body comprising representatives of the Council and all other participants in the Brunel Pension Partnership be established to ensure oversight of Devon Pension Fund investments and participation in the Brunel Pension Partnership;
(c) that the Investment & Pension Fund Committee be authorised and granted delegated powers to undertake such tasks as it thinks appropriate to progress implementation of investment pooling and to take such decisions and do all other things deemed necessary in order to promote the interests of the Council with respect to pooling: which without limitation shall include agreeing and authorising any documentation, contracts, terms of reference, financial expenditure or investment that may be required consequential upon the Fund's participation in the Brunel Pension Partnership;
(d) that the County Treasurer and the County Solicitor be similarly authorised and granted delegated powers to undertake such tasks as they think appropriate to progress implementation of investment pooling and to take such decisions and do all things deemed necessary in order to support the Investment & Pension Fund Committee and to promote the interests of the Council with respect to pooling: which without limitation shall include informing and advising the Investment & Pension Fund Committee on the continued viability and suitability of investment pooling in the light of any developments, financial or otherwise, in the period up to the establishment of the Brunel Pension Partnership;
(e) that subject to the above, all such matters be carried out with the aim of achieving a target date for beginning investment pooling of 1 April 2018, and otherwise subject to such intermediate steps and timescales as may be considered appropriate and necessary by the Investment & Pension Fund Committee;
and
(f) that, additionally, the County Council note the continuing discussions around the principle of scheme member involvement in formal oversight arrangements [referred to at Minute 30 of the Investment & Pension Fund Committee], which the Committee were supportive of and felt should be regarded favourably.
The motion was put to the vote and, nem com, declared CARRIED.