For social security institutions that have an investment mandate, the management ensures that it has the technical expertise to manage the investments of the social security institution. In particular, it manages liquid assets so as to guarantee the timely and accurate payment of benefits, in each of the social security programmes run by the institution. Legislation, policy or decree establishes the legal liability of the management and/or its designated agents for fraudulent investments.

Section B.5 provides guidelines for: (a) institutions with internal investment units; (b) institutions with external fund managers; and (c) institutions with representation on the boards of companies in which they have significant asset holdings. Corresponding structures and mechanisms are provided to facilitate the application of the guidelines.

The ISSA Guidelines on Investment of Social Security Funds provides guidance on a progressive process of governance that starts with establishing the various structures involved in the investment process, through defining their roles and how they interact, to processes to be set up to ensure that governance objectives are met.