§ Mr. Barry Fieldasked the Chancellor of the Duchy of Lancaster (1) if he will grant exemption under section 46(1) (a) of the Financial Services Act 1986 to those members and officers of local superannuation administering authorities which are using external fund management organisations to take the day-to-day investment decision provided that the authority's own investment strategy satisfies the requirement of superannuation regulation P3;
(2) what assessment he has made of the adequacy of the protection enjoyed by members and pensioners of local superannuation administering authorities under the Financial Services Act 1986, in cases where the whole council, the committee or investment panel members, or county treasurers have not sought authorisation under the Act.
§ Mr. MaudeUnder the provisions of section 191 of the Financial Services Act, members and officers of local superannuation administering authorities who use external fund managers are not likely to require to be authorised, provided that those managers take the day-to-day investment decisions. So the question of granting an exemption does not arise.
Fund managers who take day-to-day investment decisions will have to be authorised and will be subject to the appropriate conduct of business rules drawn up by their authorising bodies. Contributions to those funds will thus have the same degree of investor protection as is available generally under the regulatory regime.