Currently the beleaguered Council Tax Payers of London are paying for thirty three investment funds , thirty three investment advisers, thirty three investment strategies and thirty three sets of decisions – when one would suffice.
What’s worse, because of the convoluted procurement process that they are required to go through, taking a timely investment decision is nigh on impossible.
There are two negative outcomes to this . Firstly London Borough Pension Schemes are paying over the top for advice, trustee meetings and funds. Secondly they are taking sub-optimal investment decisions because they neither have joint buying power nor have they delegated authorities to a center of expertise.
What’s behind this inefficiency a lot of consultancy that would be lost through consolidation into a Common Investment Fund, a lot of decision makers who would find themselves with little residual authority and a lot of inertia (as this is not a subject very high on anyone’s agenda).
I know there are arguments that each Borough needs a separate strategy because they have individual funding problems but this can easily be dealt with through the unification of the CIF (as is done elsewhere).
Similarly there will be issues surrounding the redeployment of the many investment experts whose livelihood is tied up with these inefficiencies.
But really and truly it is time that somebody blew the whistle on this nonsensical investment structure
GIVE THE LONDON BOROUGH’S PENSION FUNDS A COMMON INVESTMENT FUND AND FAST.
- Brent London Borough Council v Fuller – WLR Daily (innertemplelibrary.wordpress.com)
- A visit to Fish Lady (mariannemarlow.wordpress.com)
- Yemshaw v Hounslow London Borough Council – WLR Daily (innertemplelibrary.wordpress.com)
- London 2012 Olympics: £1.5 million worth of tickets on offer to London borough councils (telegraph.co.uk)
- Cycling cash for outer London boroughs (bikeradar.com)
- Regina (Z) v Croydon London Borough Council – WLR Daily (innertemplelibrary.wordpress.com)
- Regina (Hertfordshire County Council) v Hammersmith and Fulham London Borough Council – WLR Daily (innertemplelibrary.wordpress.com)
- Response: It’s corporate directors’ pensions that our society really can’t afford (guardian.co.uk)
- Risk Management Partners Ltd v Brent London Borough Council and another – WLR Daily (innertemplelibrary.wordpress.com)
- Reviews, commissions and more reviews (redbrickblog.wordpress.com)
- Tamworth Borough Council Offer FREE Services (femaleimagination.wordpress.com)
- Night Stalker will be sentenced (mirror.co.uk)
- No Rise In Council Tax In Tamworth (femaleimagination.wordpress.com)
- Council tax to be frozen in England as local authorities cut services (telegraph.co.uk)
- Sort it out or pay the price (politicalpromise.co.uk)
- BUDGET 2011: Pension shake-up means employees will have to work ‘to 70 and beyond (dailymail.co.uk)
- Budget 2011: Council tax frozen for the first time in 18 years (dailymail.co.uk)
- MPs’ expenses: Eric Illsley submitted dozens of ‘phantom’ council tax claims (telegraph.co.uk)
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You really make it seem so easy with your presentation but I find this topic to be really something
which I think I would never understand. It seems too complicated and very broad for me.
I am looking forward for your next post, I will try to get the hang of it!