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Publication - Publication

Scottish National Investment Bank: implementation plan

Published: 28 Feb 2018
Directorate:
Chief Economist Directorate
Part of:
Economy, Money and tax
ISBN:
9781788516600

This implementation plan provides recommendations on the establishment of a Scottish 'National Investment Bank'.

Contents
Scottish National Investment Bank: implementation plan
Appendix E Business plan contents

Appendix E Business plan contents

The table below identifies and describes the key sections of the Business Plan.

Sections and components
State Aid and regulatory clearance
  • Progress on State Aid Clearance for market activities.
  • Progress on regulatory clearance – work through necessary asset clearance with Financial Conduct Authority with the FCA.
Operating model and legal entity
  • Building on work by the Scottish Government, further work on the Bank’s operating model and organisation structure, including establishment of any necessary subsidiaries, their staffing and purpose.
  • The existing landscape element to identify how current activity will be encompassed within the Bank
  • The Bank’s recruitment needs and a recruitment plan, remuneration policies and structures.
  • Identification of temporary premises for newly appointed Management Team as well as permanent premises for when wider team is employed.
Market access
  • Initial suite of products/funds and investment activity that the bank would operate in order to respond to SG’s Strategic Framework for the Bank.
  • Target firms for these products and how the bank would find customers and how investments would be made, including investment through funds and other financial intermediaries.
  • What structures and staff are necessary within the Bank to support these activities.
Portfolio strategy
  • Strategy for establishing portfolio of assets via the products set out above and expected returns and profile of returns.
  • Profile of investment and fit with budgetary support from the Scottish Government.
  • Asset management strategy including management and sale of equity investments/fund investments and recycling of capital.
  • Incorporation of any legacy assets and legacy funds or investment programmes, and plans for how these would be accounted for in the Bank.
Financial
  • Financial controls and systems necessary for making investments and handling of returns including from debt holders.
IT architecture
  • Identification of suitable systems and applications to support investment/asset management.
  • The process for becoming ‘ IT ready’, e.g., set up of email domains and procurement of necessary systems in other areas.
Risk management and compliance
  • Consideration of risk management and compliance frameworks, systems and controls, as well as identifying responsible owners.
  • Consideration should also be given to how data will be managed.
People strategy
  • Strategy for staffing the Bank, including what staff are necessary, remuneration and conditions, fit with investment strategy.
  • On-going development of staff as the Bank is established.
  • Practical considerations for staff – location, IT, pension arrangements, etc.
Monitoring and reporting
  • Identification of key performance indicators and governance/reporting, both internally and externally.
  • How the report and relationship will work with the Advisory Board and Scottish Government, including any data sharing and confidentiality agreements necessary.

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