17-29 – Investment Policy Guidelines – Interim TCorp Waiver
What’s new or changing
- The NSW Government has provided a waiver to certain provisions within OLG’s Investment Policy Guidelines to allow councils to engage NSW Treasury Corporation (TCorp) in the provision of investment advice.
What this will mean for your council
- Councils can now seek investment advice from TCorp as part of their financial and strategic planning processes.
- Section 5 of OLG’s Investment Policy Guidelines requires councils to seek advice only from advisors licensed by the Australian Securities and Investments Commission, to obtain written confirmation that no actual or potential conflicts of interest exist, and to undertake separate reference checks of advisors.
- Those requirements have now been waived to the extent that councils wish to engage TCorp to provide advice about investments.
- The waiver applies only to TCorp and recognises its unique position as a public sector financial services provider. TCorp has in place a robust Conflicts Management Policy, which will apply to any advisory services provided to councils, and is accountable to NSW Treasury.
- Councils are reminded of their fiduciary responsibility when investing, and should exercise the care, diligence and skill that a prudent person would exercise in managing the affairs of other persons.
- OLG will undertake a broader review and update of the Ministerial Investment Order and Investment Guidelines in the coming months. OLG will consult with councils as part of that process.
Where to go for further information
- The Investment Policy Guidelines are available from the ‘Resources’ page of OLG’s website at www.olg.nsw.gov.au.
Acting Chief Executive