Publication - Strategy/plan

Scottish National Investment Bank: implementation plan

Published: 28 February 2018
Directorate: Chief Economist Directorate
Topic: Economy, Money and tax
ISBN: 9781788516600

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

Supporting documents

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.

Contact

Henry Acres

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