Issue - meetings
Treasury Management Mid-Year Review 2017/18
Meeting: 30/01/2018 - Flintshire County Council (Item 88)
88 Treasury Management Mid-Year Report 2017/18 
PDF 114 KB
Additional documents:
- Enc. 1 for Treasury Management Mid-Year Review 2017/18., item 88
PDF 410 KB
- Webcast for Treasury Management Mid-Year Report 2017/18
Decision:
(a) That the Treasury Management Mid-Year Report 2017/18 be approved; and
(b) That the decision to ‘opt up’ to professional client status by regulated financial services firms as a result of the second Markets in Financial Instruments Directive (MiFID II) be approved. This will enable the Council to continue to manage its treasury management activities as at present.
Minutes:
The Corporate Finance Manger introduced the Treasury Management Mid-Year Report 2017/18 for approval.
The report had been considered at Audit Committee on 22nd November 2017 where it was recommended to Cabinet. Cabinet received the report on 19th December 2017 and approved it for recommendation to County Council.
Regulatory changes were coming into force in the near future with the main change being MiFID II (the second Markets in Financial Instruments Directive) which would come into force on 3rd January 2018. MiFID II required local authorities to be categorised by regulated financial services firms as retain clients by default who could “opt up” to be professional clients, providing that they met certain criteria.
The Council was classed as a professional client. To “opt up” and continue its status the Council must hold an investment balance of at least £10m with the person authorised to make investment decisions having at least one year’s relevant experience. Officers had considered the differing impacts of remaining a professional client or changing to a retail client and it was recommended that the Council maintained its current MiFID status of professional in order to continue to manage the Council’s daily treasury management activities as at present.
RESOLVED:
(a) That the Treasury Management Mid-Year Report 2017/18 be approved; and
(b) That the decision to ‘opt up’ to professional client status by regulated financial services firms as a result of the second Markets in Financial Instruments Directive (MiFID II) be approved. This will enable the Council to continue to manage its treasury management activities as at present.