PENSIONS Citation and commencement 1 1 These Regulations may be cited as the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Amendment Regulations 2000. 2 These Regulations shall come into force on 7th April 2000. Amendment of Regulations 2 The Local Government Pension Scheme (Management and Investment of Funds) (Scotland) 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); . 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 the words “which would contravene” insert the words “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 from time to time by the authority in accordance with any material change in their policy on the matters referred to in paragraph (2) and the statement as revised must be published. . Amendment of 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; . SAM GALBRAITH A member of the Scottish Executive St Andrew’s House, Edinburgh 13th March 2000