Kington Town Council approves its investment policy for the next two years
Kington Town Council approves its investment policy for the next two years
Kington Town Council has approved its investment policy, which will be reviewed every two years.
The policy was drafted by members of the finance and general purposes committee and they recommended it to the full council for adoption.
Members considered the policy at a recent meeting of the town council.
The policy states that the Council does expect its investments during the 2026-27 financial year to exceed £100,000.
The Council’s investment priorities are the security of its reserves and to minimise the risk of losses, the liquidity of investments to meet the cash flow needs of the council, to aim to achieve the optimum return on its investments commensurate with adequate safeguards of security and liquidity and the Council will not borrow more than or in advance of its needs purely in order to profit from the investment of the extra sums borrowed
No non-specified investments are included in the Investment Policy for the Council as these investments are not acceptable due to their higher potential risk.
The Council does not currently hold any non-financial investments for profit-making purposes and any such proposal would require separate consideration and approval by full council
Kington Town Council does not currently hold any long-term investments at the moment but it will consider doing so if an investment product meets the criteria.
The policy also states that the council will manage investment risk through the use of high credit quality institutions, diversification and regular review and they will seek to spread financial risk by placing investments with more than one financial institution where practical and proportionate to the sums held, taking account of cash flow requirements, administrative efficiency and any applicable protection limits at the time.
All investments and deposits will be in pounds sterling and placed with UK registered financial institutions.
The Council will only invest in products such as Savings Accounts, Fixed Term Deposit Accounts, Fixed Savings Accounts and Notice Accounts until further review of the policy.
The investment policy also states that the council will also have regard for the general economic and political environment in which institutions operate.
The investment position will be reviewed annually by the Responsible Financial Officer (RFO) and reported to the finance Committee or full council.
The Investment Policy will be reviewed by the Responsible Financial Officer (RFO) every two years and any variation to the policy will be submitted to the council for approval.
Members agreed to approve the policy and it will be published on the Council’s website.
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