GAPP Principle 14

Dealing with third parties for the purpose of the SWF’s operational management should be based on economic and financial grounds, and follow clear rules and procedures.

Status: Implemented

The general principles governing the relationship between Folketrygdfondet and external managers of GPFN assets are defined in the management mandate. Folketrygdfondet may make use of external managers and outsource operational functions as long as risk management and internal control considerations are attended to. Agreements with external managers shall be designed to safeguard the economic interests of the Fund and shall further take into account the time horizon of the relevant investment strategies. At present, Folketrygdfondet does not employ external managers in the management of GPFN. The mandate states that Folketrygdfondet, to the extent suited, shall operate in compliance with the Regulation on Internal Control and Risk Management drafted by the Financial Supervisory Authority of Norway. At present, Folketrygdfondet does not employ external managers in the management of Fund.

Sources: GPFN Mandate, Folketrygdfondet’s website.