Source · Select Committees · Treasury Committee
Recommendation 9
9
Accepted
Maintain approach preventing political interference in the National Wealth Fund's operations.
Recommendation
Political interference would create a climate of uncertainty for investors and ultimately reduce the NWF’s capacity to attract private capital and promote growth. We were therefore reassured to hear from the former NWF Chief Executive that the NWF has not been subject to political interference. The Treasury must maintain that approach. (Recommendation, Paragraph 48)
Government Response Summary
The government strongly agrees the NWF must remain operationally independent to maintain market confidence and attract private capital, confirming this is ensured through its experienced fiduciary Board and a clear Framework Document.
Government Response
Accepted
HM Government
Accepted
The government strongly agrees the NWF must remain operationally independent. This is crucial for safeguarding the NWF’s investment integrity and maintaining market confidence to ensure it can attract private capital at scale. The NWF has been established as a limited company and is overseen by an experienced fiduciary Board, led by an independent Chair and comprised of majority independent Non-Executive Directors. The NWF is strategically aligned and responsive to the government’s agenda. HM Treasury will issue strategic steers judiciously to ensure the NWF’s activity remains aligned with government priorities, with any updates made only in exceptional circumstances and published online. However, the NWF’s investment committees and executive team retain full operational independence in respect to its investment decisions within its delegated authority – apart from where these would be considered novel, contentious or repercussive, as set out in Managing Public Money guidance. The NWF also has independence in the day-to-day running of the business. As with all government arm’s length bodies, the relationship between HM Treasury and the NWF is governed by a Framework Document, which is currently being updated to reflect the NWF’s expanded role. The document will continue to clarify the NWFs operational autonomy and provide clear, transparent parameters for how HM Treasury exercises strategic guidance and oversight.