6.—(1) Instead of managing and investing fund money for themselves, an administering authority may appoint one or more investment managers to manage and invest it for them.
(2) However, they may appoint an investment manager only if they comply with paragraphs (3) to (6).
(3) They must reasonably believe that the investment manager is suitably qualified by his ability in and practical experience of financial matters to make investment decisions for them.
(4) The investment manager must not be their employee.
(5) They must be satisfied–
(a)that the fund is managed by an adequate number of investment managers; and
(b)that the value of the fund money to be managed by any one investment manager will not be excessive.
(6) They must have taken proper advice.