§ Mr. Gordon PrenticeTo ask the Secretary of State for the Environment what fiduciary duty councilors have to their council tax payers on decisions concerning(a) the local authority's pension fund and (b) investments in equities. [13941]
§ Sir Paul BeresfordThe fiduciary duties of a local authority to its council tax payers to exercise prudential care and propriety apply in relation to the exercise of all the authority's functions, including those in respect of superannuation funds and investment in equities. The Local Government Pension Scheme Regulations 1995 require local authorities responsible for managing pension funds to have regard to the need to diversify investments, to consider the suitability of those investments and to seek qualified advice at reasonable intervals.