Report of the Chamberlain
The Board considered a report of the Chamberlain reviewing the Financial Investment Board’s risk register. The Chamberlain introduced the report and advised the Board of two recommended amendments to the risk register.
A Member asked whether the recent announcement of a possible change from RPI to CPIH should be considered a risk in respect of the Pension Fund, although this wouldn’t come into effect until 2030. The Chamberlain advised that officers would take this away and consider it alongside the imminent speech by the Chancellor.
A Member noted the risk relating to Responsible Investment and commented that the risk also encompassed the material risk of the impact of discharging relevant obligations on long-term returns. The Chamberlain added that conversely, not taking sufficient action was a risk and there were two distinct aspects of this risk to be balanced. The Chamberlain suggested reviewing the wording of the risk to make this apparent.
RESOLVED – That the Financial Investment Board:
a) Note the existing risks and actions present on the Financial Investment Board’s Risk Register, and confirm that appropriate control measures are in place;
b) Confirm that there are no further risks relating to the services overseen by the Financial Investment Board.