Guideline 25. Implementation of investment policies by an investing institution

Submitted by Anonymous (not verified) on Tue, 07/10/2018 - 09:46

The investment strategy set out by the board or management is efficiently implemented.

Guideline code

INVEST_03000

Mechanism

The management should establish standards and benchmarks to evaluate the performance of the investing institution.
Procedures manuals should document how investment policies are to be implemented.
Compliance with the procedures manuals should be monitored and reviewed.
Staff compensation and appraisal criteria should create the correct incentives to do right and not to do wrong.
The liability of the officers and staff of the investing institution must be clearly established.

Parent

Structure

To establish clear accountability, the organizational structure of the investing institution should reflect the investment decision-making process and should integrate a system of checks and balances.
The internal audit office, or a similar body, may dedicate competent staff to the investing institution.
There may be an office external to the investing institution to evaluate, monitor and review the overall risk of the investment portfolio.