Agenda item

Report of the City Treasurer.

11.1    Phil Triggs presented the report and advised that the London CIV had approved a new governance structure and was in the process of implementing it. This included the creation of a Shareholders Committee reporting to the CIV’s Board and the appointment of two non-executive directors to the Board by London Local Authorities. The new governance arrangements reflected the wish for a more streamlined structure as the CIV had originally faced the challenge of seeking agreement from all 32 members. Phil Triggs advised that the CIV’s annual general meeting was due to take place on 12 July and further information of what would be discussed at the meeting was due to be circulated shortly.

11.2    The Chairman asked if there was any information on what eight London boroughs were likely to be represented on the CIV’s Board and she added that the City Council should be included, considering it was one of the earliest members to join the Board and had transferred a higher proportion of assets to the CIV’s Fund compared to most other Members. She also asked if it was known who the CIV’s treasurers would be. In respect of the reference in the report to City of London’s request that the CIV’s shareholders assume an equal responsibility of the liability guarantee as CIV staff were part of the City of London’s pension scheme, the Chairman asked if this was due to the size of the pension liability. She also asked whether the City Council should participate in the CIV’s asset class and asset strategy consultation.

11.3    Members asked if there was any progress in the appointment of the vacant Chief Investment Officer at the CIV and what would happen in the event that the City Council was not satisfied with the eight London boroughs appointed to the CIV’s Board.

11.4    In answer to questions from Members, Phil Triggs advised that he would provide further information on London borough appointments to the CIV’s Board and the CIV’s London Treasurers as soon as he is informed, adding that as a member of the Treasury and Pensions Officers Board he would receive notification of such matters. In respect of CIV staff in the City of London’s pension scheme, Phil Triggs advised that the liability was significant and the current arrangements were open ended in nature and therefore there was a need to firm up the liability guarantee. The Committee noted that once the investment structure was agreed, a new Chief Investment Officer for the CIV would be appointed. Phil Triggs concurred that it was imperative that the City Council had representation on the CIV’s Board and the Chairman and himself were impressing this to the CIV. Phil Triggs also advised that the City Council was not intending to participate in the CIV’s asset class and asset strategy consultation as the City Council preferred to use its own advisers. In response to this, the Chairman commented that she therefore did not feel that it was necessary to be involved in the CIV’s consultation.

11.5    RESOLVED:

            That the update on the London CIV be noted.