The investment unit of the institution efficiently implements the investment policies set out by the board or management.
Guideline code
GG_08300
Mechanism
Mechanism
- The management should establish standards and benchmarks to evaluate the performance of the investment unit.
- Manuals of procedures should document how investment policies are to be implemented.
- Compliance with the manuals of procedures must be monitored and reviewed.
- Staff compensation should provide the appropriate incentives to do right and not to do wrong.
- The liability of the officers and staff of the investment unit must be clearly established.
Structure
Structure
- To establish clear accountability, the organizational structure of the investment unit should reflect the investment decision-making process and should embed a system of checks and balances.
- The internal audit office should dedicate competent staff to the investment unit.
- There should be an office external to the investment unit to evaluate, monitor and review the overall risk of the investment portfolio.
Title HTML
Guideline 63. Investment policies
Type
Guideline_1
Weight
87