Santiago Principles Self-Assessment

Libyan Investment Authority

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The legal framework of the Libyan Investment Authority ('the Libyan Investment Authority ', ‘Fund’, 'Authority') is outlined in Law 13 of 2010 with provisions describing the Fund’s purpose, Board responsibilities, funding mechanism and structure. The framework is designed to establish the sound and effective operation of the Fund and achievement of its objectives.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

Law 13 establishes clear operational independence for The Libyan Investment Authority and establishes standards of public accountability.

As an autonomous government entity, the Libyan Investment Authority is legally separate from the Government. This means that, although the Libyan Investment Authority is accountable to the Government, it has operational independence.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

The Libyan Investment Authority's international assets are currently under sanctions (United Nations Security Resolution 1970 as of 2011). The Libyan Investment Authority is currently evaluating options and the associated investment policies to enhance the management of these assets.