Timeline LGPS Investment Regulations 2026
STATUTORY INSTRUMENTS
2026 No. 554
PUBLIC SECTOR PENSIONS, ENGLAND AND WALES
The Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026
Made ---- 19th May 2026
Laid before Parliament ---- 21st May 2026
Coming into force ---- 30th June 2026
The Secretary of State makes these Regulations in exercise of the powers conferred by sections 1(1) and 3(1) to (3) of, and paragraphs 11, 12 and 13 of Schedule 3 to, the Public Service Pensions Act 2013 (“the 2013 Act”), and sections 1 and 2 of the Pension Schemes Act 2026.
In accordance with section 21(1) and (5) of the 2013 Act, the Secretary of State has consulted such persons (or the representatives of such persons) as appeared to the Secretary of State to be likely to be affected by these Regulations.
In accordance with section 3(5) of the 2013 Act, these Regulations are made with the consent of the Treasury.
PART 1
Introductory
1. Citation, commencement and extent
1.—(1) These Regulations may be cited as the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026.
(2) These Regulations come into force on 30th June 2026.
(3) These Regulations extend to England and Wales.
2. Interpretation
2.—(1) In these Regulations—
| “the 2000 Act” means the Financial Services and Markets Act 2000; |
| “the 2013 Regulations” means the Local Government Pension Scheme Regulations 2013; |
| “the 2014 Regulations” means the Local Government Pension Scheme (Transitional Provisions, Savings and Amendment) Regulations 2014; |
| “the 2026 Act” means the Pension Schemes Act 2026; |
| “authority” means an administering authority listed in Part 1 of Schedule 3 to the 2013 Regulations; |
| “fund money” means money that is or should be in a pension fund maintained by an authority; |
| “member of the scheme” has the same meaning as in the 2013 Regulations; |
| “the relevant asset pool company” means, in relation to an authority, the asset pool company in which that authority is participating, in accordance with regulation 7(1) or a direction made under regulation 9(1)(a); |
| “the relevant strategic authority” means, in relation to an authority, the strategic authority for that authority set out in guidance published by the Secretary of State from time to time; |
| “the Scheme” means the scheme established by the 2013 Regulations. |
| “Scheme employer” has the same meaning as in the 2013 Regulations; |
| “strategic authority” includes, for the purposes of paragraph (d) of the definition of “strategic authorities” in section 2(5) of the 2026 Act, a unitary district council or a county council designated by the Secretary of State from time to time as a single foundation strategic authority under section 3(1) of the English Devolution and Community Empowerment Act 2026 (single foundation strategic authorities). |
(2) Any restrictions imposed by these Regulations apply to authorities which have the power within section 1 of the Localism Act 2011 (local authority’s general power of competence) or section 5A(1) of the Fire and Rescue Services Act 2004 (powers of certain fire and rescue authorities) in the exercise of those powers.
(3) Any authority which does not have the powers mentioned in paragraph (2) has, by virtue of these Regulations, the power to do anything authorised or required by these Regulations.
PART 2
Investments, Funds and Borrowing
3. Investment
3.—(1) In these Regulations “investment” includes—
| (a) |
a contract entered into in the course of dealing in financial futures, traded options or derivatives; |
| (b) |
a contribution to a limited partnership in an unquoted securities investment partnership; |
| (c) |
a contract of insurance if it is a contract of a relevant class, and is entered into with a person within paragraph (2) for whom entering into the contract constitutes the carrying on of a regulated activity within the meaning of section 22 of the 2000 Act (regulated activities). |
(2) A person within this paragraph, for the purposes of paragraph (1)(c), is a person who has permission under Part 4A of the 2000 Act (permission to carry on regulated activities) to effect or carry out contracts of insurance of a relevant class.
(3) A contract of insurance is a contract of a relevant class for the purposes of paragraphs (1)(c) and (2) if it is—
| (a) |
a contract of insurance on human life or a contract to pay an annuity on human life where the benefits are wholly or partly to be determined by reference to the value of, or income from, property of any description (whether or not specified in the contract) or by reference to fluctuations in, or an index of, the value of property of any description (whether or not so specified), or |
| (b) |
a contract to manage the investments of pension funds, whether or not combined with a contract of insurance covering either conservation of capital or payment of minimum interest. |
(4) For the purposes of this regulation—
| “limited partnership” has the meaning given by section 3(1) of the Limited Partnerships Act 1907 (interpretation of terms); |
| “recognised stock exchange” has the same meaning as in section 1005 of the Income Tax Act 2007 (meaning of “recognised stock exchange” etc); |
| “traded option” means an option quoted on a recognised stock exchange; |
| “unquoted securities investment partnership” means a partnership for investing in securities which are not quoted on a recognised stock exchange when the partnership buys them. |
4. Management of a pension fund
4.—(1) In addition to any sum otherwise required to be credited by virtue of the 2013 Regulations or the 2014 Regulations, an authority must credit to its pension fund—
| (a) |
the amounts payable by it or payable to it under regulations 15(3)(b), 67 and 68 of the 2013 Regulations (employer’s contributions and further payments), |
| (b) |
all amounts received under regulation 69(1)(a) of the 2013 Regulations (payment by Scheme employers to administering authorities: member contributions), |
| (c) |
all amounts received under regulation 69(1)(e) of the 2013 Regulations (payment by Scheme employers to administering authorities: members on reserve forces service leave), |
| (d) |
all income arising from investment of the fund, and |
| (e) |
all capital money deriving from such investment. |
(2) In the case of an authority which maintains more than one pension fund, as respects sums which relate to specific members, the references in this regulation to the authority’s pension fund are to be read as references to the fund which is the appropriate fund for the member in question in accordance with the 2013 Regulations.
(3) Interest under regulation 71 of the 2013 Regulations (interest on late payments by Scheme employers) must be credited to the pension fund to which the overdue payment is due.
(4) An authority must pay from its pension fund—
| (a) |
any benefits to which any person is entitled by virtue of the 2013 Regulations or the 2014 Regulations, and |
| (b) |
any interest to which any person is entitled by virtue of regulation 14 of the Local Government Pension Scheme (Amendment) (No. 3) Regulations 2023 (interest on payments under the statutory underpin). |
(5) Any costs, charges and expenses incurred in administering a pension fund may be paid from the fund, except for charges prescribed by regulations made under sections 23 (supply of pension information in connection with divorce etc), 24 (charges by pension arrangements in relation to earmarking orders) or 41 (charges in relation to pension sharing costs) of the Welfare Reform and Pensions Act 1999.
5. Restriction on power to borrow
5.—(1) Except as provided in this regulation, an authority must not borrow money where the borrowing is liable to be repaid out of its pension fund.
(2) Subject to paragraph (3), an authority may borrow, by way of temporary loan or overdraft which is liable to be repaid out of its pension fund, any sums which it may require for the purpose of—
| (a) |
paying benefits due under the Scheme, or |
| (b) |
meeting investment commitments arising from the implementation of a decision, which is required by its investment strategy, to change the balance between different types of investment. |
(3) An authority may only borrow money under paragraph (2) if, at the time of the borrowing, the authority reasonably believes that the sum borrowed, and interest charged in respect of that sum, can be repaid out of its pension fund within 90 days of the borrowing.
6. Separate bank account
6.—(1) An authority must hold all fund money that is not otherwise invested or held by the asset pool company in a separate account kept by it with a deposit-taker.
(2) An authority must secure that the deposit-taker may not exercise a right of set-off in relation to the account referred to in paragraph (1) in respect of any other account held by the authority or any party connected to the authority.
(3) In this regulation, “deposit-taker” means—
| (a) |
a person who has permission under Part 4A of the 2000 Act (permission to carry on regulated activities) to carry onthe activities specified by Article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (accepting deposits); |
| (b) |
the Bank of England; |
| (c) |
the National Savings Bank. |
PART 3
Asset pool companies
7. Participation in an asset pool company
7.—(1) On and after the day on which these Regulations come into force, an authority must participate in an asset pool company with a view to that company managing the funds or other assets of the Scheme for which that authority is responsible.
(2) Subject to regulation 23, an authority may only participate in one asset pool company at any time.
8. Authorisation by the Financial Conduct Authority
8.—(1) Subject to paragraph (2), before managing any funds or other assets of the Scheme for which an authority is responsible, any relevant asset pool company must be authorised as—
| (a) |
a full-scope UK AIFM, or |
| (b) |
an investment firm with its head office in the United Kingdom (or, if the firm has a registered office, with its registered office in the United Kingdom). |
(2) On and after 30th September 2027, any relevant asset pool company must be authorised as a full-scope UK AIFM.
(3) In this regulation—
“full-scope UK AIFM” has the same meaning as in section 417(1) of the 2000 Act (definitions)(1);
“investment firm” has the same meaning as in section 424A(1) of the 2000 Act (investment firm)(2).
| (a) |
any report from an actuary appointed under section 13(4) of the Public Service Pensions Act 2013 (employer contributions in funded schemes) or by the authority under regulation 62 of the 2013 Regulations (actuarial valuations of pension funds); |
| (b) |
any report from the local pension board appointed by the authority or from the Local Government Pension Scheme Advisory Board; |
| (c) |
any representations made by the authority in response to the consultation under paragraph (3); |
| (d) |
any other evidence that the Secretary of State regards as relevant to whether the authority has been complying with these Regulations or acting in accordance with guidance issued under regulation 7(1). |
(5) If the Secretary of State is of the opinion that additional information is required to enable a decision to be taken whether to issue a direction under this regulation, or as to what any direction should contain, the Secretary of State may carry out such inquiries as the Secretary of State considers appropriate to obtain that information.
(6) An authority must comply with any request from the Secretary of State intended to facilitate the obtaining of information under paragraph (5).
9. Investment managers
9.—(1) Instead of managing and investing fund money itself, an authority may appoint one or more investment managers to manage and invest fund money, or any part of such money, on its behalf.
(2) But the authority may only appoint an investment manager if the authority complies with paragraphs (3) and (4).
(3) The authority must reasonably believe that the investment manager’s ability in and practical experience of financial matters make that investment manager suitably qualified to make investment decisions for it.
(4) The authority must take proper advice in relation to the appointment and the terms on which the appointment is made.
10. Investments under section 11(1) of the Trustee Investments Act 1961
10. An authority to which section 11 of the Trustee Investments Act 1961 applies may invest, without any restriction as to quantity, in any investment made in accordance with a scheme under section 11(1) of that Act (which enables the Treasury to approve schemes for local authorities to invest in collectively).
11. Consequential amendments
11.—(1) The 2013 Regulations are amended as follows.
(2) For regulation 57(1)(i) (pension fund annual report) substitute—
| “(i)the current version of the investment strategy under regulation 7 (investment strategy statement) of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016;”. |
(3) For regulation 58(4)(b) (funding strategy statement) substitute—
| “(b)the current version of the investment strategy under regulation 7 (investment strategy statement) of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016.”. |
(4) For regulation 69(2)(b) (payment by Scheme employers to administering authorities) substitute—
| “(b)paragraph (1)(c) does not apply where the cost of the administration of the fund is paid out of the fund under regulation 4(5) (management of a pension fund) of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016.”. |
12. Revocations and transitional provision
12.—(1) The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009 and the Local Government Pension Scheme (Management and Investment of Funds) (Amendment) Regulations 2013 are revoked.
(2) Regulations 11 (investment policy and investment of pension fund money), 12 (statement of investment principles), 14 (restrictions on investments), 15 (requirements for increased limits) of and Schedule 1 (table of limits on investments) to the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009 continue to have effect in relation to an authority until the date when that authority first publishes its investment strategy statement under regulation 7.
(3) For the period starting on 1st November 2016 and ending on whichever is the earlier of the date the authority publishes its investment strategy statement under regulation 7, or 31st March 2017, regulation 7 applies to an authority only to the extent necessary to enable that authority to formulate and publish its investment strategy statement.
(1) 2013 c. 25 (“the 2013 Act”). See section 2 of, and Schedule 2 to, the 2013 Act as to how the power is exercisable by the Secretary of State. Section 3(1) of the 2013 Act was amended by section 94(2) of the Public Service Pensions and Judicial Offices Act 2022 (c. 7) (“the 2022 Act”) and section 7(2) of the Pension Schemes Act 2026 (c. 22) (“the 2026 Act”). Section 3(2) of the 2013 Act was amended by section 94(3) of the 2022 Act and section 7(2) of the 2026 Act. Paragraph 12 of Schedule 3 to the 2013 Act was amended by section 100 of the 2022 Act.
(2) 2026 c. 22.
(3) Section 21(5) was inserted by section 7(3) of the 2026 Act.
(4) 2000 c. 8 (“the 2000 Act”).
(5) S.I. 2013/2356.
(6) S.I. 2014/525.
(7) Part 1 of Schedule 3 has been amended by S.I. 2015/755, 2016/653, 2019/615, 2019/1351, 2020/123, 2021/272, 2023/187.
(8) 2026 c. 23.
(9) 2011 c. 20.
(10) 2004 c. 21; section 5A was inserted by section 9(1) of the Localism Act 2011. It was moved under a new heading by paragraph 6 of Part 1 of Schedule 1 to the Policing and Crime Act 2017 (c. 3), and amended by paragraph 7 of Part 1 of Schedule 1, and paragraph 112 of Part 2 of Schedule 2, of that Act.
(11) Section 22 was amended by section 7(1) of the Financial Services Act 2012 (c. 21), section 27(4) of the Financial Guidance and Claims Act 2018 (c. 10), section 69(3) of the Financial Services and Markets Act 2023 (c. 29), and by S.I. 2018/135.
(12) Part 4A of the 2000 Act was substituted for Part IV by section 11(2) of the Financial Services Act 2012.
(13) >1907 c. 24; the definition of “limited partnership” was inserted by section 109(2) of the Economic Crime and Corporate Transparency Act 2023 (c. 56).
(14) 2007 c. 3; section 1005 was substituted by paragraph 1 of Schedule 26 to the Finance Act 2007 (c. 11), and amended by paragraph 55 of Part 3 of Schedule 2 to the Taxation (International and Other Provisions) Act 2010 (c. 8).
(15) An administering authority is required to maintain a pension fund by regulation 53(1) of, and paragraph 1 of Schedule 3 to, the 2013 Regulations.
(16) Regulation 15(3)(b) was amended by S.I. 2015/755. Regulation 67 was amended by S.I. 2026/226. Regulation 68 was amended by S.I. 2018/493.
(17) Paragraph (1)(e) of regulation 69 was inserted by S.I. 2015/755.
(18) See regulation 53(2) and (3) of, and Part 2 of Schedule 3 to, the 2013 Regulations for provisions as to how an administering authority becomes the “appropriate administering authority” in relation to a person. There are no amendments to regulation 53(2) or (3). Part 2 of Schedule 3 was amended by S.I. 2014/1012, 2014/1146, 2015/755, 2016/449, 2016/653, 2017/126, 2017/251, 2018/103, 2018/269, 2018/493, 2018/1133, 2019/615, 2020/123, 2021/272, 2023/187, 2023/402, 2024/232, 2024/402, 2025/113, 2025/115, 2025/117, 2025/118, 2026/158, 2026/159 and 2026/362.
(19) S.I. 2023/972, which was relevantly amended by S.I. 2026/226.
(20) 1999 c. 30.
(21) For these purposes, “investment strategy” is defined by section 2(5) of the 2026 Act.
(22) S.I. 2001/544, amended by S.I. 2002/682 and 2026/102; there are other amending instruments but none is relevant.
(23) For these purposes, “participate” and related expressions in relation to an asset pool company must be construed in accordance with section 1(9)(b) of the 2026 Act.
(24) For these purposes, “asset pool company” is defined by section 1(9)(a) of the 2026 Act.
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