2020-21
INTRODUCTION
Wilsford Parish Council acknowledges the importance of prudently investing the temporarily surplus funds held on behalf of the community.
This strategy has been prepared in accordance with the Guidance on Local Government Investment (“The Guidance) issued under Section 15(1)(a) of the Local Government Act 2013, effective from 01 April 2010. The Guidance recommends that a Parish Council produces an Annual Investment Strategy which sets out its policy for managing the investments and giving priory to the liquidity and security.
Where a Parish Council expects its investments at any time during a financial year to exceed £10,000 but not £500,00 it should decide on the extent, if any, to which it would be reasonable to have regard to the Guidance in relation to that year.
Wilsford Parish Council expects its investments during 2020/2021 financial year to exceed £10,000 but not £500,000 and has agreed to apply the Guidance as set out below
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INVESTMENT OBJECTIVES
The Parish Council’s priorities are:
1. The security of its reserves.
2. The liquidity of its investments; and
3. Return on investments.
The Parish Council will aim to achieve the optimum return on its investments commensurate with levels of security and liquidity.
All investments will be made in sterling and, as a minimum, surplus funds will be in an interest-bearing bank account.
The Department for Communities and Local Government maintains that borrowing of monies purely to invest or to lend and make a return, is unlawful and this Parish Council will not engage in such activity.
SECURITY OF INVESTMENTS
For the prudent management of its treasury balances, maintaining sufficient levels of security and liquidity, the Parish Council will use:
• UK banks and UK building societies
As from 01 April 2020 the Parish Council will continue to hold its money in a current account and business money manager accounts with HSBC. HSBC is covered by the Financial Services Compensation Scheme(FSCS). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. In respect of depositors, and eligible depositor is entitled to claim up to £75,000. As the Parish Council currently (26 June 2020) has a balance of less than £40,000 has adequate cover by the FSCS.
LIQUIDITY OF INVESTMENTS
The RFO will determine the maximum period for which funds may prudently be invested, to not compromise liquidity.
REVIEW AND AMENDMENT OF REGULATIONS
The Investment Strategy will be reviewed annually. The Annual Strategy will be approved by the full Council.
The Parish Council reserves the right to make variations to the Strategy at any time, subject to the approval of the full Council. Any variations will be made available to the public.
FREEDOM OF INFORMATION
In accordance with the Freedom of Information Act 2000, this Document will be posted on the Parish website and a hard copy will be available from the Parish Clerk.