PENSIONS Citation and commencement 1 1 These Regulations may be cited as the Local Government Pension Scheme (Management and Investment of Funds) (Amendment) Regulations 1999. 2 These Regulations shall come into force on 4th January 2000. Amendment of Regulations 2 The Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 are amended in accordance with regulations 3 to 6 of these Regulations. General definitions 3 In regulation 2, after the definition of “securities” insert— “statement of investment principles” means the statement referred to in regulation 9A(1) or any revision of it, as appropriate. . Terms of appointment of investment managers 4 In regulation 7— a in paragraph (5), delete “and” at the end of sub-paragraph (b) and at the end of sub-paragraph (c) add— , and d the administering authority’s statement of investment principles ; and b in paragraph (7), after “which would contravene” insert “the administering authority’s statement of investment principles,”. Statement of investment principles 5 After regulation 9, insert the following regulation— Statement of investment principles 9A 1 An administering authority must, after consultation with such persons as they consider appropriate, prepare, maintain and publish a written statement of the principles governing their decisions about investments. 2 The statement must cover their policy on— a the types of investments to be held, b the balance between different types of investments, c risk, d the expected return on investments, e the realisation of investments, f the extent (if at all) to which social, environmental or ethical considerations are taken into account in the selection, retention and realisation of investments, and g the exercise of the rights (including voting rights) attaching to investments, if they have any such policy. 3 The first such statement must be published on or before 3rd July 2000. 4 The written statement must be revised by the administering authority in accordance with any material change in their policy on the matters referred to in paragraph (2) and published. . Schedule 1 6 1 In Part I of Schedule 1— a for paragraph 9 substitute the following— 9 All investments in units or other shares of the investments subject to the trusts of unit trust schemes managed by any one body (but see paragraph 14). 9A All investments in open-ended investment companies where the collective investment schemes constituted by the companies are managed by any one body. 9B All investments in units or other shares of the investments subject to the trusts of unit trust schemes and all investments in open-ended investment companies where the unit trust schemes and the collective investment schemes constituted by those companies are managed by any one body (but see paragraph 14). ; and b in paragraph 14, for “and 9” substitute “, 9 and 9B”. 2 In Part III of Schedule 1 for the definition of “open-ended investment company” substitute the following— “open-ended investment company” means an open-ended investment company as defined in section 75(8) of the Financial Services Act 1986 which is an undertaking for collective investment schemes to which the Council Directive No. 85/611/ EEC co-ordinating the laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities , as amended, applies . Signed by authority of the Secretary of State Hilary Armstrong Minister of State Department of the Environment, Transport and the Regions 7th December 1999