Scottish National Investment Bank: Ministerial Advisory Group - terms of reference

The Scottish National Investment Bank Act (2020) (the Act) requires that a ministerial advisory group be established to provide ministers with advice on the Bank’s objects, conduct and performance.

This terms of reference sets out the role, functions and remit of the group, and how it will operate.

It is intended that the group’s workplan will be reviewed at the end of the parliamentary term to ensure it remains first for purpose. 

Role and functions

The ministerial advisory group (MAG) will consider, and advise Scottish ministers on, the Bank’s progress towards its main objective:

• giving financial assistance to commercial activities for the purpose of promoting or sustaining economic development or employment in Scotland

The group will use evidence documents including, but not limited to, annual report and accounts, impact reports, mission reports and associated strategies. 

It may also draw from the Bank Implementation Plan and its assumptions about the potential impact of the Bank on the future investment landscape in Scotland.

The group’s resultant recommendations and observations will be reported to Scottish ministers.  

Focus of work and workplan

The initial suggested areas of focus are: 

• vision and missions
• social impact and outcomes
• five year review 

Membership and quora

The group has six members and will be co-Chaired by Richard Rollison, Director of International Trade and Investment and John Glen, previously NED to Orpea Group and CEO of Buccleuch. 

The members have specific knowledge of areas within which the Bank operates, and of the public body legislative requirements. 

Core membership of the group includes those with knowledge of:  

• investment
• trade union representation
• business scale up
• equalities and inclusive growth
• impact Investing 
• regulatory requirements 

Additional members may be invited to participate in the group, by the Chairs, to support short-term work streams where appropriate.

The group will be considered quorate when four members are present, including a Chair. Meetings will be attended by named members, and support workers if required, only. Substitutes will usually not be accepted, apart from by prior agreement with the Chair.

Decision making will be as far as possible by consensus, or by majority if consensus is not reached, with a Chair having a casting vote if necessary. 

Members will be invited to review their membership every two years with the option to further extend. Where possible, there will be a progressive change of membership to provide appropriate continuity.

Governance 

The group will provide advice and make recommendations to Scottish ministers on the Bank’s objects, conduct and performance in line with the workplan. 

The group is not subject to the formal public appointments process and the requirements of the Code of Practice for Ministerial Appointments to Public Bodies in Scotland.

The Chairs will advise on all aspects of confidentiality with respect to the information presented to, and discussed by the membership.

The Secretariat function will be carried out by the Shareholder Team.

Working practices

The group will meet around four times per year, with at least one being in person. Standard meetings will be around half-day duration. Any discussions required outside of group meetings will take place by correspondence, unless otherwise agreed.

Whilst the Bank is operationally independent of the Scottish Government, and therefore the group, the Shareholder Team will provide regular updates on the group’s activities to ensure the Bank remains aware of progress.  

Where required the Bank will be invited to attend group meetings to present necessary background or additional information to allow the group to provide informed advice.

Publication of work 

A dedicated area on the Scottish Government website shall be established for the group where short biographies of members, terms of reference and minutes will be published. 

Conflicts of interest

Group members should use their membership, or any information acquired in the course of their membership, for the purposes of this group only.

Group members should declare any personal or business interests which might be perceived to present a conflict to the work of this group.

If any such interests arise in relation to a matter under consideration by the group, members should declare that interest at the relevant meeting for recording in the minutes. The secretariat will maintain the interests register. 

Group members should not participate in discussions in which they have a relevant personal or business interest. 

Budget and expenses

Participation in the group will not be remunerated. Reasonable travel and subsistence in line with Scottish Government policy will be provided where necessary.