Agenda item

The following items of urgent business were considered.

London Councils:  London LGPS CIV Ltd – Funding

The Committee considered a report of the Chamberlain progress made to date on the establishment of a London Local Government Pensions Scheme Collective Investment Vehicle (CIV) and the City Corporation’s participation in the Scheme, including the adoption the new Articles of Association, entering into the shareholder agreement, and contributing to the capital required for the CIV.

A Member expressed concern about future funding being left open ended and suggested that at this stage the regulatory capital cost of £150,000 only should be recommended to the Financial Investment Board and that any further funding should be the subject of a further report to the Committee. The Committee supported this.

RESOLVED – that the content of the report be noted and that approval be given to the following:-

1.   the City Corporation, as a shareholder in the London LGPS CIV Limited, adopting the new Articles of Association and supporting every issued ordinary share being reclassified as an A ordinary share;

2.   the City Corporation, as a shareholder in the London LGPS CIV Limited, entering into the shareholder agreement;

3.   the Comptroller & City Solicitor being authorised to sign both the Written Resolution to indicate the City’s approval of the actions under (2) above, and to execute the Shareholders’ Agreement for the London LGPS CIV Limited;

4    recommending that the Financial Investment Board meet the cost of the regulatory capital of £150,000 by way of a subscription for B shares for the London LGPS CIV Limited from the Pension Fund; and

5.   any subsequent costs such as the annual service charge and additional regulatory capital be the subject of a further report for consideration by the Committee.