8. The governing body(ies) should act in the best interests of the SWF, and have a clear mandate and adequate authority and competency to carry out its functions.
Article 7 of Law 13 of 2010 provides the Board of Trustees with the responsibility of overseeing LIA and ensuring that it meets its policy purpose, as outlined in Principle 2.
The Board of Trustees appoints the Board of Directors, whose responsibilities are clearly set out in Law 13 and include:
• Defining the investment and reinvestment policies, strategies, criteria of the Investment Fund
• Appointing service providers, including banks and asset managers, and defining their mandates
• Ensuring that investment decisions are aligned with the policies and strategies approved by the Board of Trustees
• Approving investment and divestment decisions
• Managing the risk of the investment fund
• Approving the plans developed by the Executive Director or the committees formed for the investment and reinvestment of the Investment Funds
• Preparing the fund’s financial statements and approving the fund’s annual report
• Overseeing the performance of the investment portfolio and ensure that they achieve the stated objectives
• Approving the articles of associating of wholly owned subsidiaries and ensuring they are in line with relevant legislation as well as nominating board directors to subsidiary companies.
• Establishing branches and offices of the fund at home and abroad and appointing their staff
• Appointing the executive director and other staff in consultation with the Board of Trustees, define the organisational structure and send it to the Board of Trustees for approval
• Issuing the fund’s regulations