Investment Policy

Purpose

This policy sets out how Towerblock Radio CIC manages any surplus funds that may be invested, ensuring that investments are low-risk, ethical and aligned with the organisation's mission.

Scope

This policy applies to the board and Finance Lead in relation to any investment of surplus funds.

Definitions

• Investment means placing surplus funds in financial instruments or deposits to generate return.
• Ethical investment means investing in instruments that do not conflict with the organisation's values.
• Surplus funds means funds not required for immediate operational use.

Responsibilities

The board approves the investment strategy. The Finance Lead monitors investments and reports to the board.

Policy Statement

Towerblock Radio CIC invests surplus funds prudently, ethically and in accordance with its mission. The priority is capital preservation, with any investment strategy prioritising low risk over return.

Detailed Procedures

Investment principles

• Capital preservation: the primary objective is to protect capital.
• Liquidity: investments must be accessible when needed.
• Ethical alignment: investments must not conflict with Towerblock Radio CIC's values or mission.
• Simplicity: investments should be straightforward and easily understood.

Permitted investments

• Interest-bearing bank deposits.
• National Savings and Investments products.
• UK government bonds (gilts).
• Deposit accounts with FCA-regulated institutions.

Prohibited investments

Equities or shares in individual companies, cryptocurrencies, derivatives or speculative instruments, and investments in companies involved in tobacco, arms, gambling, fossil fuels, or any activity that conflicts with the organisation's values.

Ethical screening

Before making any investment, the Finance Lead shall screen the investment for ethical alignment. Any concerns shall be referred to the board.

Reporting Process

The Finance Lead reports on investments at each board meeting.

Compliance Requirements

• Companies Act 2006.
• Community Interest Company Regulations 2005.
• Trustee Act 2000 (as best practice for CICs).

Monitoring

The board reviews the investment strategy annually.

Review Cycle

This policy shall be reviewed annually.

Version Number

Version 1.0

Approval Section

Approved by: Towerblock Radio CIC Board Date: July 2026 Next review: July 2027

Related Policies

• Reserves Policy
• Finance Controls Policy
• Asset Management Policy

Website URL slug

/policies/investment-policy

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Investment Policy | Towerblock Radio

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Towerblock Radio CIC's investment policy covering ethical investment principles, permitted and prohibited investments, capital preservation and prudent management of surplus funds.

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