§ Lord Lyellasked Her Majesty's Government:
If they will clarify the legal position of local authorities who delegate superannuation fund investment decisions to external fund managers.
§ The Parliamentary Under-Secretary of State, Department of the Environment (Baroness Blatch)Government officials have had discussions with local government repsresentatives, regulatory bodies and those representing fund managers. We intend to propose amendments to the Local Government Superannuation Regulations expressly to authorise authorities to delegate superannuation fund investment decisions to outside managers subject to certain conditions. We are circulating proposals to local authorities in England and Wales and other interested parties for their comments. Subject to the necessary statutory and parliamentary procedures, we would intend the amended regulations to come into force before the end of the year.