The Chamber met with representatives from MFEM to discuss the proposed Sovereign Wealth Fund. The concept of intergenerational equity is sensible, and to have a fund ringfenced for disaster preparedness and economic resilience is also welcomed.
Currently funds set aside for a disaster sit within the general accounts, so to have them managed by a Governing Board, with a Trustee, Fund Manager, Administrator, and Independent Auditor is encouraging.
There were 3 potential options for the make up of the Board of Directors, the first option had no private sector business representation, and we questioned the qualifications and experience of some of the proposed inclusions to be in a governing role managing such a fund. Similarly to the proposed changes to the CINSF Board, we believe a greater weighting of industry experts, along with (local) private sector with a strong financial background would be a better option.
For more information: www.mfem.gov.ck/sovereign-wealth-fund