Our recommendations

A review of public sector financial assets and how they are managed and governed.
  1. We recommend that those public entities holding investment portfolios that support their core operational activities regularly assess how they can strengthen the skills and capabilities for governing their financial assets.
  2. We recommend that public entities with significant financial assets regularly assess how well they are managing and governing their financial portfolios and reporting to stakeholders using the following questions:
    • Are the investment objectives clear and consistent with the purpose of holding the assets?
    • Are the designs of the management and governance processes appropriate?
    • Are responsibilities clearly assigned?
    • Are delegations used appropriately?
    • Are duties clearly separated?
    • Are incentives well-aligned?
    • Is there a clear and documented process?
    • Is monitoring effective?
    • Are communications clear and relevant to the needs of stakeholders?
  3. We recommend that the Treasury prepare a strategic perspective on and vision for holding financial assets in the public sector.