GAPP Principle 14

Dealing with third parties for the purpose of the SWF’s operational management should be based on economic and financial grounds, and follow clear rules and procedures.

Status: Implemented

The general principles governing the relationship between Norges Bank and external managers of GPFG assets are defined in the management mandate. The regulation on risk management and internal control states that Norges Bank bears the responsibility for risk management and internal control for outsourced operations. Norges Bank shall ensure that the governing bodies of the Bank are entitled to inspect and monitor outsourced operations. Norges Bank shall further ensure that there is adequate expertise within the organisation to manage the outsourcing agreement(s).

Furthermore, the mandate stipulates that all dealings with third parties shall be in accordance with the economic interests of the GPFG. The asset manager shall establish internal policies in accordance with the mandate and other legal requirements, including regulations on risk management and internal control. Procurements must comply with the Norwegian Act on Public Procurement and its regulations. The governing bodies of the asset manager monitor compliance accordingly.

Sources: GPFG mandate, Regulation on Risk Management and Internal Control.