Delegation of Authority and segregation of duties

Decision making structures shall be designed with the objective of promoting transparency and placing authority and accountability at appropriate levels of the organisation. Such structures shall further ensure sound governance, operational efficiency and sufficient segregation of duties in order to prevent fraud and errors.

Issued 17 October 2008
Last updated 24 September 2018

Purpose

This policy defines authority to make decisions throughout Norges Bank Investment Management (NBIM), including delegation of such authority and requirements for segregation of duties in the organisation.

Policy

Decision making structures shall be designed with the objective of promoting transparency and placing authority and accountability at appropriate levels of the organisation. Such structures shall further ensure sound governance, operational efficiency and sufficient segregation of duties in order to prevent fraud and errors.

Responsibility for the management, operation and development of Norges Bank Investment Management is delegated from Norges Bank Executive Board to the Chief Executive Officer of Norges Bank Investment Management. Further delegation shall be carried out to reflect the organisational structure and to ensure a clear and efficient execution of all tasks and responsibilities.

Definitions

  • Authority is the power or right to make decisions.
  • Responsibility is a duty or an obligation to perform or complete a task assigned.
  • Delegation is a transfer of authorisation or responsibility to others.
  • Segregation of duties means division or allocation of duties between two or more employees in order to achieve reduced risk of fraud and/or errors.

Decision making, authority and responsibilities

  • NBIM’s overall objectives and strategy shall guide decision making activities.
  • The Authority Matrixes defines activities that require decision making and the roles that have the authority to approve, be consulted or be informed in such decision making processes.
  • Job descriptions allocate responsibilities to individuals. The job descriptions detail specific operational responsibilities within the authorities provided through the Authority Matrixes.
  • Managers may delegate operational responsibility further through allocation of process and task responsibility, or through allocation of specific actions.
  • An authorised person must be a permanent employee, which has been employed in NBIM for a certain period of time.
  • Decisions, including delegations, shall be documented and retained. Documentation requirements depend on the type of decision.

Segregation of duties

  • Absolute requirements for segregation of duties, indicating where dual approval is necessary, shall be further documented.
  • Segregation of duties shall be evaluated and implemented for activities where the inherent risk of fraud or errors is significant or critical.
  • The Chief Compliance Officer may require segregation of duties between functions if deemed necessary from an operational risk perspective. Deviation from segregation of duties requirements may be approved by the Chief Compliance Officer. Deviations shall be documented and include a risk acceptance and time limit.

Further delegation of authority

  • Decision rights as defined in the Authority Matrixes may be further delegated.
  • Only authorised approvers as specified in the Authority Matrixes may delegate authority to other roles or personnel.
  • Delegation shall be subject to regular reviews.

Signature rights

  • Some decisions may be documented using individual signatures. Signature approval may be made in writing or performed electronically.
  • Authorisations in NBIM shall distinguish clearly between internal authority and the power of attorney to commit Norges Bank toward external parties through signature, legally binding statements, electronic confirmations and communications or through other means.
  • Signature rights shall be granted to a limited number of people only and shall be clearly defined and restricted.
  • A list of authorised signatures shall be updated at all times and serve as a signature sample. The signature list with specimens shall be treated as restricted information.

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