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Local Government Act 2002

Planning, decision-making, and accountability - Financial management

105: Investment policy

You could also call this:

“Rules for how local councils handle money and investments”

You need to know about the investment policy that local authorities must have. This policy is part of the rules they follow when planning and making decisions.

When a local authority creates an investment policy, they must include several important things. First, they need to explain what mix of investments they will have. This means they’ll tell you about the different types of investments they plan to make.

Next, they have to say how they will get new investments. This helps you understand how they’ll grow their investment portfolio.

The policy also needs to give you an outline of how they will manage their investments. This includes explaining how they’ll report on these investments to the local authority. This way, you can see that they’re keeping track of how the investments are doing.

Lastly, the policy must outline how they will look at and manage any risks that come with their investments. This shows you that they’re thinking about potential problems and how to handle them.

All of these things help make sure the local authority is careful and thoughtful about how they invest money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172363.

Topics:
Government and voting > Local councils
Money and consumer rights > Banking and loans
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“A plan for how your local council borrows and manages money”

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“Rules for creating a plan about how new buildings help pay for community stuff”

Part 6 Planning, decision-making, and accountability
Financial management

105Investment policy

  1. A policy adopted under section 102(1) must state the local authority's policies in respect of investments, including—

    1. the mix of investments; and
      1. the acquisition of new investments; and
        1. an outline of the procedures by which investments are managed and reported on to the local authority; and
          1. an outline of how risks associated with investments are assessed and managed.

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            Notes
            • Section 105: amended, on , by section 22(1) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
            • Section 105(a): repealed, on , by section 22(2) of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).