GAPP Principle 6

The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

Status: Implemented

The Norwegian parliament has laid down the regulatory framework for the GPFN in the Government Pension Fund Act. The Ministry of Finance holds the overall responsibility for the management of the Fund and acts as the asset owner. The Ministry has issued general investment guidelines in a separate management mandate to Folketrygdfondet. The Board of Folketrygdfondet is responsible for the asset management operations at Folketrygdfondet. The Board has issued supplementary governing documents for the management of the GPFN and delegated the operational management of the Fund to the CEO of Folketrygdfondet.

The management mandate set by the Ministry of Finance specifies that Folketrygdfondet shall make investment decisions and exercise ownership rights independently of the Ministry.

The Ministry of Finance has further issued Guidelines for Observation and Exclusion of companies from the Government Pension Fund Global (GPFG). Decisions on exclusion (or re-inclusion) of individual companies pursuant to these guidelines also apply to the investments of the GPFN. The management mandate stipulates the responsibility of the Ministry to notify Folketrygdfondet of any exclusion or re-inclusion of companies under the Guidelines. The ethically motivated guidelines are in place to reduce the risk of the Fund being invested in companies deemed in serious violation of fundamental ethical norms, see Adherence of the GPFG to the Santiago principles for more details.

Sources: Government Pension Fund Act, Folketrygdfondet Act, GPFN mandate, Guidelines for Observation and Exclusion.