Palestine Solidarity Campaign Ltd & Anor, R (on the application of) v Secretary of State for Communities and Local Government [2018] EWCA Civ 1284 (06 June 2018)

Palestine Solidarity Campaign Ltd & Anor, R (on the application of) v Secretary of State for Communities and Local Government [2018] EWCA Civ 1284 (06 June 2018)

The Secretary of State's guidance restricting local government pension fund investments contrary to UK foreign or defence policy was within the statutory powers conferred by the Public Service Pensions Act 2013 and the 2016 Regulations, as the legislation permits consideration of wider public interest in formulating investment guidance. The guidance does not amount to a prohibited system of prior approval under Article 18(4) of the IORP Directive, as it provides a general framework rather than external oversight of individual investment decisions.

Citation
[2018] EWCA Civ 1284
Parties
Claimant/respondent: Palestine Solidarity Campaign Ltd; Claimant/respondent: Jacqueline Lewis; Defendant/appellant: Secretary of State for Communities and Local Government
Jurisdiction
England and Wales
Judgment Date
06 June 2018
Procedural Posture
Judicial Review Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed; High Court declaration set aside.
Legal Topics
Statutory Interpretation, Public Law Powers, Pension Fund Investment, EU Directives Compliance, Judicial Review, Local Government, Fiduciary Duties
Administrative Law Pensions Law European Union Law Statutory Interpretation Public Law Powers Pension Fund Investment EU Directives Compliance Judicial Review +2 more

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Parties

Palestine Solidarity Campaign Ltd

Claimant/respondent

Jacqueline Lewis

Claimant/respondent

Secretary of State for Communities and Local Government

Defendant/appellant

Procedural Posture

Judicial Review Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the Secretary of State acted for an unauthorised purpose in issuing guidance restricting local government pension fund investments contrary to UK foreign or defence policy
  2. 2 Whether the guidance was contrary to Article 18 of Directive 2003/41/EC (the IORP Directive)

Ratio Decidendi

The Secretary of State's guidance restricting local government pension fund investments contrary to UK foreign or defence policy was within the statutory powers conferred by the Public Service Pensions Act 2013 and the 2016 Regulations, as the legislation permits consideration of wider public interest in formulating investment guidance. The guidance does not amount to a prohibited system of prior approval under Article 18(4) of the IORP Directive, as it provides a general framework rather than external oversight of individual investment decisions.

Court Disposition

Appeal allowed; High Court declaration set aside.

Orders

  • The Secretary of State's appeal is allowed.
  • The declaration of unlawfulness made by the High Court is set aside.