The introduction of the Independent Person (“IP”) role within the Local Government Pension Scheme (“LGPS”) reflects a clear policy objective within the LGPS governance framework to strengthen oversight, improve challenge, and reinforce governance standards.
On paper, it’s a straightforward idea – an experienced individual providing independent scrutiny across fund activity. In practice, the reality is more complex.
After Government clarification there still exists a structural mismatch between the expectations of the role and the realities of delivering it. The IP is positioned as an individual, but the requirements increasingly resemble a capability. Although there is still scope for the authority to maintain their current independent advisers in their current capacity.
A role that exceeds individual capacity
Consider this: the scope of the IP role spans investment advice, governance, operational oversight, risk management, and broader governance frameworks, as well as requiring engagement with the pools, the ability to challenge decision making, and the judgement to interpret complex, often technical information.
This is by no means a narrow advisory function. It is a cross functional role that demands both depth and breadth. Even highly experienced professionals are unlikely to hold specialist expertise across all these domains. More importantly, governance today is not only about knowledge. It is about access to data, tools, and infrastructure that support informed oversight. This is particularly relevant in the context of independent oversight in pension funds, where decisions must be both well-informed and demonstrably impartial.
The implication is clear. The IP is an individual, but effective delivery almost necessarily depends on a wider support structure.
Supply constraints and rising expectations
There is also a practical constraint. With all LGPS funds expected to appoint an IP, the available talent pool is limited. Individuals with the required combination of public sector understanding, investment experience, and governance expertise are scarce.
At the same time, expectations are rising. Regulatory scrutiny continues to increase. Stakeholders expect stronger transparency, clearer reporting, and more consistent challenge. This combination of limited supply and expanding scope creates pressure on a model that relies on a single appointment. This pressure is increasingly visible across public sector pension oversight structures more broadly.
The risk is not simply that roles are difficult to fill. It is that the structure itself may not support the level of oversight intended.
Infrastructure is now a baseline requirement
Modern governance operates within a complex framework of compliance and operational standards. Any IP appointment must align with regulatory obligations, although not necessarily requiring FCA regulation.
Although for an individual practitioner, meeting these requirements independently can be prohibitively complex. This shifts the discussion from capability to infrastructure. Effective governance now depends on systems, controls, and processes that extend beyond the capacity of a single person.
Continuity and resilience as governance priorities
Resilience has become a central theme in governance design. Oversight functions must remain effective regardless of individual availability. Absence, conflicts, or capacity limits cannot interrupt governance processes.
An individual model struggles to provide this continuity. An organisational approach, by contrast, can offer consistent coverage, access to specialist expertise, and the flexibility to respond to changing demands. For a role of such importance, this isn't merely an enhancement. It is a safeguard.
Towards a more sustainable model
An emerging approach combines the clarity of individual accountability with the strength of organisational support. A named IP remains responsible for independent challenge and oversight, while being supported by a multidisciplinary team and a robust operational framework.
This model aligns more closely with the realities of modern governance. It enables depth of expertise, ensures compliance with procurement and regulatory standards, and provides continuity over time.
It also reframes the IP role. Rather than searching for a single individual to meet every requirement, the focus shifts to delivering a structured governance capability.
The future of independent oversight
The direction of travel is clear. Governance expectations will continue to expand, not contract. Models that rely solely on individual capacity are unlikely to keep pace with the Independent Person needing to be appointed before year end.
The future of the IP role lies in combining independence with infrastructure. This preserves the integrity of the role while ensuring it is supported by the expertise, systems, and resilience required to deliver effective oversight.
Apex Investment Advisory
We deliver independent, strategic investment advice to a global client base and currently advise on approximately £100 billion of LGPS assets. In addition we work with a range of institutional investors, from pension funds and family offices to sovereign entities and private banks. With industry-renowned leadership in alternatives and private markets, our tailored solutions span private equity, credit, infrastructure, hedge funds, real assets, and even tokenised strategies.
Our Advisory offering:
- Investment Objective Setting
- Strategy reviews and portfolio construction
- Investment and operational due diligence
- Manager selection
- Portfolio monitoring and measurement
- Transition Management
Contact us to learn more about how we support Independent Person LGPS appointments and governance frameworks in practice.
