10. The accountability framework for the SWF’s operations should be clearly defined in the relevant legislation, charter, other constitutive documents, or management agreement.
The accountability framework for the SWF's operations should be clearly defined in the relevant legislation, charter, other constitutive documents or management agreement. The accountability framework for the funds’ operations is established in the laws and decrees discussed under Principle 1. They were published in the Diario Oficial (Official Gazette) and are available on the funds’ website at www.hacienda.cl/fondos-soberanos/legislacion.html and on the Library of Congress (www.bcn.cl).
To ensure a proper and effective accountability framework, a range of reports are prepared by the different bodies involved in the funds’ management.
Article 12 of the FRL and Article 7 of DFL Nº 1, which regulate the PRF and the ESSF, respectively, establish that the Finance Ministry must present to the Finance Commissions of both houses of Congress and to the Joint Budget Commission of Congress monthly and quarterly reports about the funds. In addition, and although not so required by law, the Finance Ministry publishes an annual report about the funds. All these reports are publicly available on the website indicated above.
Under the modification of the Supreme Decree N° 1.383, the CBC is accountable to the Finance Minister for the operational management of the sovereign fixed income portfolios of both funds (which includes bank deposits in the case of the ESSF) and provides the Finance Ministry with daily, monthly, quarterly and annual reports about the portfolios under their management, and the services provided by the custodian. The external managers are accountable to the Finance Minister for the operational management of the portfolios that they manage and provide the Finance Ministry with daily and monthly reports about the portfolios under their management.
The Financial Committee is an advisory body and is accountable for its obligations as established in Supreme Decree N° 621. Under Article 7 of this Decree, it must present an annual report on its work to the Finance Minister and send a copy of this report to the Finance Commissions of both houses of Congress and to the Joint Budget Commission of Congress. This report is also available on the funds’ website.
In addition, the Comptroller General’s Office, an autonomous body, is responsible for auditing public-sector finances and, therefore, the SWFs.