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No. | Item | |
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APOLOGIES To receive
any apologies for absence Minutes: Apologies had been received from Councillors
Simon Glyn, John Griffith (Anglesey County Council Representative), John
Brynmor Hughes and Peredur Jenkins. |
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DECLARATION OF PERSONAL INTEREST To receive
any declaration of personal interest Minutes: None to note |
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URGENT ITEMS To note any
items which are urgent business in the opinion of the Chairman so that they may
be considered Minutes: i.
Private Equity Investment Arrangements /
Allocation of Assets between Funds It was explained that the options for various funds proposed by Partners
Group were normally submitted for the Committee's approval, but as the information
was not available to the committee, it was suggested that the Committee should
approve to delegate the power to the Head of Finance Department, in
consultation with the Chair, to make the decision and report back to the
Committee in November. Resolved to delegate power
to the Head of Finance Department, in consultation with the Chair, to make the
decision and report back to the Committee in November. ii. Operator's Procurement Process It was reported that the Wales Pensions Partnership was in the process of
appointing an Operator, but as the complex procurement process had been
time-consuming, it was reported that the joint committee had not yet met to
make a recommendation to the individual Councils. The information was
accepted. iii. New representative on the Local Government Pension Scheme Advisory
Board Following Mary Barnett's
retirement from the Local Government Pension Scheme Advisory Board, it was
reported that the Association had now nominated Clive Lloyd (Chair of Swansea
City and County Council's Pensions Fund Committee) to represent Wales (the
eight funds in Wales) on the Scheme's Advisory Board. The information was accepted. |
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The Chairman shall propose that the minutes of the meeting of this committee held on 12.6.2017 to be signed as a true record Minutes: The Chair signed the minutes of the meeting of this committee, held on 12 June 2017, as a true record |
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MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE II (MiFID II) PDF 130 KB For
the committee to elect for professional client status and approve application
with all relevant institutions in order to ensure it can continue to implement
an effective investment strategy. Additional documents:
Minutes: It was explained that under the current UK Act,
local authorities were automatically categorised as ‘per se professional’
clients in respect of non‑MiFID scope businesses. They were also categorised as ‘per se
professional’ clients for MiFID scope business if they satisfied the MiFID
Large Undertakings test. In
accordance with MiFID's presentation, from 3 January 2018, firms would no
longer be able to categorise a local public authority as a ‘per se professional
client’, and therefore all local authorities would have to be classified as
retail clients unless they were ‘opted up’ by firms to an elective professional
client status. Local authorities that did not satisfy the MiFID Large
Undertakings test could opt up to elective professional client status if they
fulfilled certain ‘opt-up criteria’. It was reported that MiFID allowed for retail
clients that met certain conditions to elect to be treated as professional
clients subject to assessment tests - a quantitative and qualitative test. In order for Gwynedd Council to be treated as a
professional body and 'opt-up', the appropriate steps would have to be
completed by 3 January. A standard industry quantitative and qualitative
questionnaire would need to be completed, and a letter sent to each company and
investment manager. It was emphasised that this process formalised
the current arrangements, and that professional engagement already existed
between the Fund and the companies. Not 'opting up' would be likely to lead to
commercial problems. RESOLVED i)
To note the
possible impact on the investment strategy from becoming a retail client with
effect from 3 January 2018. ii)
To approve the
immediate commencement of applications for elected professional client status
with all relevant institutions in order to ensure it can continue to implement
an effective investment strategy. iii)
In electing for professional client status, the
committee acknowledges and approves to forgo the protections available to
retail clients. iv)
To delegate the
Section 151 Officer the appropriate approvals for the purposes of completing
the applications and determining the appropriate basis of the application. |
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GWYNEDD PENSION FUND'S FINAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2017 AND RELEVANT AUDIT PDF 133 KB
Additional documents:
Minutes: Submitted, for
information: statement of the Pension Fund's post-Audit accounts and the ISA260
report from Deloitte. It was noted that the Audit and Governance Committee had
already approved the accounts at its meeting on 28 September, and that they had
now been finally certified. It was noted that it was good practice to submit
the information to the Pensions Committee. Attention was
drawn to the Deloitte Report (Wales Audit Office), noting that the Auditor
intended to publish an unqualified report on the financial statements subject
to the resolution of minor matters that had not yet been completed. It was
noted that the partner from Deloitte had expressed satisfaction in relation to
these matters, and that the relevant documentation had now been signed
following the discussion in the Audit and Governance Committee. In response to the
reports, Members noted their gratitude to the team for its commendable work. RESOLVED to accept the Statement of Accounts
and the Deloitte / Wales Audit Office Report. |
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MID YEAR TREASURY MANAGEMENT 2017-2018 PDF 294 KB To consider the report of the Head of Finance Minutes: Submitted for
information: the mid-year review, namely the aspects of the report relevant to
the Fund, which had already been submitted to the Audit and Governance
Committee on 28 September 2017. It was explained that the Chartered Institute
of Public Finance and Accountancy’s Treasury Management Code (CIPFA’s TM Code)
requires that authorities report on the performance of the treasury management
function when setting the strategy (March of the previous financial year), at
year end (May of the following year), and mid-year (September of the current
year). The treasury's
activities were highlighted in the report along with the associated risk
monitoring and risk management. It was noted that the flexibility would be
managed; the priority was to keep the money in the fund safe, and that pursuing
the best interest rate was secondary to security. In response to a
question regarding the value of the British pound following Brexit
negotiations, it was noted that concerns had arisen, but that the market
response following the election outcome had been quiet, with business
confidence dependent upon the progress (or lack of progress) with the Brexit negotiations. It was noted that investments had
performed better in relation to the pound, but that the value of investments
was dependent upon the world-wide performance of assets. RESOLVED to accept the information. |