GAPP Principle 10
The accountability framework for the SWF’s operations should be clearly defined in the relevant legislation, charter, other constitutive documents, or management agreement.
Status: Implemented
The accountability framework is laid out in the following legal documents: Government Pension Fund Act, Norges Bank Act, GPFG mandate, Regulation on Risk Management and Internal Control, and Regulation on Financial Reporting at Norges Bank.
The Parliament-appointed Auditor General is responsible for the supervision of the Ministry of Finance. The Auditor General shall ensure that the Ministry’s efforts related to the GPFG are in accordance with the decisions and intentions of the Norwegian Parliament.
The parliamentary appointed Supervisory Council and the selected external auditor are responsible for the supervision of the Executive Board of Norges Bank. On behalf of the Executive Board the internal audit unit shall ensure that adequate and effective risk management and appropriate and satisfactory internal control are in place. The internal audit shall issue independent and objective statements and provide advice concerning improvements in the risk management and control systems.
Within NBIM, tasks related to effective risk management processes is delegated to the Risk area and the Governance and Compliance area. The operational risk and compliance second-line functions are organised within the Governance and Compliance area. The Governance and Compliance area has authority to report independently to the Executive Board when required.
Furthermore, the mandate requires Norges Bank to publicly report biannually on the GFPG management. The mandate stipulates minimum requirements for such reporting. The Ministry of Finance reports on the management of the Fund in a separate annual white paper to Parliament. The annual Fund reports are available on the Ministry’s website.
Sources: Government Pension Fund Act, Norges Bank Act, GPFG mandate, Regulation on Risk Management and Internal Control, Regulation on Financial Reporting, Ministry ofFinance’s and Norges Bank’s websites.