Board chair statement on investment in conflict zones response letter from Minister

Following on from the receipt of a letter from Local Government Minister Alison McGovern MP on 12 May 2026 responding to the Board’s letter on investing in conflict zones on 13 October 2025, the Board Chair, Cllr Roger Phillips OBE has today made this statement:

“I am disappointed that, having waited for 7 months for a response to the Board’s letter, the Minister’s reply does not fully address the key issue. LGPS funds have received detailed legal opinion from PSC suggesting they should have regard to conventional international law when carrying out their investment function. This would represent a significant departure from current practice, where funds are guided by domestic law and their fiduciary duties.

The Ministers’ response states that foreign policy is a matter for the UK Government. This is precisely why we sought clarity on whether LGPS funds are expected to have regard to international law in this context. LGPS administering authorities are not well placed to make such assessments. Only the UK Government, with access to the full resources of the state, can provide an authoritative view based on expert analysis of international law and the relevant facts.

In the absence of this clarity, we reiterate our existing advice that funds should continue to have regard to their current responsible investment policies and, when reviewing these, carefully consider the guidance on fiduciary duty previously provided by the Board. We also intend to publish more detailed guidance later this year to support funds in reviewing their policies, including how best to assess and take into account member views.”