Local Government Minister Ljiljanna Ravlich has today released a set of investment guidelines designed as a ‘best practice’ model for local government.
The guidelines have been developed in response to the exposure of some local governments to offshore investments that have been impacted by the US sub-prime mortgage market.
Ms Ravlich requested the Department of Local Government and Regional Development in developing the guidelines last year to complement the existing investment legislation.
The Minister has today sent a copy of the guidelines to all local governments and encouraged them to review their investment strategies to ensure they had a robust investment policy.
“I cannot stress enough the importance of having sound independent financial advice when establishing investment strategies,” she said.
“Local governments need to balance seeking returns on investments with prudent protection of ratepayers’ funds.”
Ms Ravlich said the investment policy guidelines were intended to be a ‘best practice guide’ to assist local governments to gain a better understanding of the various matters concerning investment, including information on complex financial instruments, independent financial advice and matters to be considered when developing an investment policy.
The Minister also thanked the Western Australian Treasury Corporation for its assistance in developing the policy guidelines.
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