These provisions deal with applications to the High Court and it would be my hope and expectation they would be used only in extreme cases. It would be difficult, if not impossible, to set out in advance what precisely would constitute an inappropriate investment, except in very obvious circumstances. For example, it would be inappropriate for funds to be put on a horse at a race meeting. Indeed, it could be inappropriate to invest in a horse. However, in most cases it may not be possible to be precise. The necessity is always to ensure that such funds are not put to other than good uses and purposes. Investments should, in so far as is possible, be made in a way which will guarantee the safety of the fund for obvious reasons.
The trustee handbook, which will be published shortly by the Pensions Board, will deal with proper investment by trustees and should be helpful in relation to the gesture being made by the Deputy. This provision simply gives the board the right to seek a High Court order in relation to an investment. It does not do anything else. Before the court grants such an order it will have to be satisfied that the investment concerned is inappropriate and likely to jeopardise the rights and interests of the members of the scheme.
The burden of proof on the board is a reasonable precaution in the circumstances. The onus would be on those in control to ensure that any investment by the scheme would not undermine or cause serious liability for the scheme, given the responsibility to its members.
