What is the minimum pension fund required for a local authority to be classified as an Elective PC?

To be classified as an Elective Professional Client (PC), a local authority must meet specific criteria regarding its pension fund size. The minimum pension fund requirement is set at £10 million. This threshold is established to ensure that the local authority demonstrates a sufficient level of financial sophistication and can adequately assess and manage financial risks associated with investment decisions.

The requirement for a minimum fund size reflects the importance of having a robust financial standing and the capacity to handle complexities involved in investment activities. Local authorities managing such funds are expected to have the necessary expertise and resources to understand the implications of their investment choices, given the fiduciary responsibilities they undertake on behalf of the pension beneficiaries.

Meeting this £10 million minimum requirement allows local authorities to opt into a classification that facilitates access to a wider array of financial services and products, suitable for clients with a significant level of investment understanding and capability.