UKFI is expected within the next month to publish a framework document that will formally set out its responsibilities. The document will outline the regulatory distance that will need to be maintained between UKFI and Government departments including the Treasury to avoid any potential conflicts of interest.
Alistair Darling, the Chancellor, has pledged that the UKFI will manage the bank stakes on an "arm's-length" basis, although that claim has already invited scepticism from bank executives who have seen the Government turning the screw in an effort to force them to restart lending to homeowners and business customers. The framework document will define exactly what is meant by the "arm's length" description.
UKFI also plans to publish a manifesto aimed at defining its role to taxpayers, as well as details of its contract with the Treasury to outline its formal asset management mandate.
Sunday, 21 December 2008
The state's fund manager
There's an interesting piece in the Telegraph today about UK Financial Investments, the company set up by the Treasury to manage its shareholdings in the banks. There's a bi of speculation over the likely non-exec appointments, and it looks like the potential candidates are pretty much traditional City types, plus an HMT representative. They are also planning to flesh out the details of UKFI's role: