Law Debenture is positioning its pensions governance business to support Local Government Pension Scheme funds as new governance requirements move into force under the LGPS Amendment Regulations 2026. The regulations introduce a series of measures first considered through the government’s Fit for the Future consultation.
The key change is a requirement for each administering authority to appoint an independent person by 31 December 2026. The appointment must be made to a named individual, although that person can be supported by a wider team and can be appointed through a professional firm.
This creates a clear implementation deadline for LGPS funds and a defined area of demand for specialist governance providers. Law Debenture already operates in pensions trusteeship and governance, giving it an existing platform from which to support funds adapting to the new framework.
The independent person is intended to strengthen oversight and provide continuity within LGPS governance structures. This is relevant because committee membership can change over time, potentially reducing institutional knowledge. An independent appointee can help maintain continuity, support induction and provide an external perspective on governance decisions.
The regulations also place greater emphasis on managing conflicts of interest. This includes situations linked to local investment decisions, where independent oversight can provide additional scrutiny and help ensure that governance processes remain focused on fiduciary responsibilities.
Administering authorities will also be required to put in place a governance strategy, a training strategy and a conflicts of interest policy. Statutory knowledge and understanding requirements will apply, while new appointees must complete induction within three months.
In addition, an independent governance review will be required every three years. The review cycle is aligned with the valuation timetable, creating a recurring requirement for external assessment of governance arrangements.
The final regulations also clarify the status of the independent person. FCA authorisation is not required for the role, and the individual cannot receive other income from the fund. These provisions are designed to protect the independence of the appointment and provide clearer parameters for how the role should operate.
Law Debenture Corporation plc (LON:LWDB) provides a wider range of services including corporate and pension trusts, process agent services, treasury management, corporate services including for special purpose vehicles, structured finance administration and whistleblowing services.
