A strong and resilient LGPS: Border to Coast’s response to the LGPS: Fit for the future consultation
Posted on January 16th, 2025

Border to Coast Pensions Partnership, in collaboration with our Partner Funds, has responded to the Local Government Pension Scheme: Fit for the future consultation.
Our response emphasises the following points:
The importance of collaboration
While recognising the need for clear roles and responsibilities for both Partner Funds and the pool – including each Fund retaining responsibility and accountability for investment strategy – we emphasise the importance of close, constructive, continuous and collaborative working which requires a strong commitment by all to partnership. Collaboration across the LGPS will be key to meeting the ambitions set out by Government.
Maximising the benefits of our pooling model
We support the proposed requirement that all pools should be FCA-authorised investment management companies and authorised to provide advice. Pools following this model, with in-house investment management capabilities, provide an opportunity to go beyond making cost savings and deliver greater value for their partner funds through increased resilience, a wider range of investment opportunities and exercising a stronger collective voice.
Avoiding overly prescriptive regulation
We welcome the clear policy direction set by the Government but caution against taking an overly prescriptive approach in regulation. It is essential the policy intent is translated into regulation in a way that is flexible enough to allow the LGPS to continue to innovate and respond to wider industry developments.
Managing the transfer of assets
It is important the transfer of assets is completed in a thoughtful and structured process, minimising costs for funds. This would be assisted by leeway for listed assets to be placed under pool management, in a similar way to legacy illiquid assets, where the creation of a pooled vehicle or meeting the March 2026 deadline for transfer would not be cost effective.
Tax relief to support the transition of UK equities and amendments to SDLT Relief regulations would further smooth this process.
The full text of the submission is here.
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