The board and management have the technical expertise to determine whether investment proposals have undergone due diligence, and act upon their determination.
Guideline code
GG_08400
Mechanism
Mechanism
- There should be manuals of procedure on how to conduct due diligence across all types of allowed investment instruments.
- The management should ensure that staff compensation provides incentives to do right and not to do wrong.
Structure
Structure
- The investment unit should have a clear, implementable and verifiable definition of what due diligence means in general, and set due diligence guidelines for each type of investment instrument in particular.
- The investment unit should have clear, transparent and verifiable methods to implement the due diligence guidelines set by the board and/or management.
- A competent office external to the investment unit should monitor compliance with the due diligence guidelines. This may be the internal or external audit office.
Title HTML
Guideline 64. Due diligence
Type
Guideline_1
Weight
88