The Board is aware that many funds will have received a letter this week from the Palestine Solidarity Campaign, alleging that LGPS administering authorities are in breach of their legal obligations in relation to the ongoing humanitarian disaster in Gaza. The letter is accompanied by a more detailed position paper that has been prepared by senior lawyers at Doughty Street Chambers. 

The letter says that both the Secretary of State, as the responsible authority for the Scheme, and individual administering authorities must take action to address the very serious allegations it contains. Although the letter asks for a response within 21 days, the Board believes that it is more important to take the necessary time to consider the arguments made and the appropriate response to them. The Board has a long-established role in assisting funds to act collectively in responding to this kind of challenge and it will aim to do so again. That may include seeking further legal advice. 

Last year, letters were sent from PSC to funds that made similar allegations. In response the Board commissioned legal advice from Nigel Giffin KC which addressed the issues as they were understood in October 2024. Whilst the latest letter and position paper present more extensive, complex and specialist legal arguments than the earlier letter, they make no reference to the Giffin advice. 

While the principles set out in the earlier advice still hold, we recognise that the situation in Gaza is an evolving one and we need to consider whether, and if so what, further advice it would be helpful to provide funds and who would be best placed to provide that.  

The Board will also write to the Local Government Minister to ask for a Government statement on the issues raised – these matters of international law are clearly more in the competence of central than local government, something which the position paper acknowledges.  

In the meantime, funds may wish to review their Responsible Investment policies in relation to human rights abuses and ensure they are both satisfied with the content of those policies and confident they are being applied effectively in practice.