GAPP Principle 8

The governing body(ies) should act in the best interests of the SWF, and have a clear mandate and adequate authority and competency to carry out its functions.

Status: Implemented

See also response to principle 7. The authority of the governing bodies is established through legislation and regulations discussed elsewhere in this document. The management mandate issued by the Ministry of Finance to Folketrygdfondet seeks to ensure that the manager acts in the best interests of the GPFN and covers management objective, strategic benchmark indices and corresponding risk limits, responsible investment practices, risk management, costs and reporting requirements. The management mandate also establishes a clear division of roles and responsibilities between the asset owner (Ministry of Finance) and the operational manager (Folketrygdfondet).

Folketrygdfondet is organised as a company of special statute under the Ministry of Finance. The Ministry selects the external auditor and appoints the Board of Folketrygdfondet. The Board is responsible for the execution of the management assignment and appoints the internal audit and the CEO of Folketrygdfondet.

The Board has issued supplementary provisions for the asset management, including principles for risk management, investment mandate and job description to the CEO of Folketrygdfondet. The CEO of Folketrygdfondet is responsible for the day-to-day management of the GPFN.

The Board receives extensive reports on the risk and return on the Fund, compliance, and internal control on a quarterly basis.

Sources: Government Pension Fund Act, GPFN mandate, Folketrygdfondet’s Website.