Control Mechanism:
The Social Security Investment Fund
has a comprehensive structure that governs its work at various levels to ensure
good governance practices under the umbrella of legislation in force, in
accordance with the Social Security Law No. (1) of 2014 and the Social Security
Investment Fund and Investment Bylaw No. (97) of 2014 and the
regulations issued pursuant to them.
1. Social Security Corporation Board:
The
Social Security Law defines the duties and powers of the Social Security
Corporation Board that govern the investments of the Social Security Corporation that are managed
by the Social Security Investment Fund.
There are three committees emanating from the Social
Security Corporation Board: Control Committee, Good Governance Committee and
Overall Risk Management Committee. These committees fulfill the duties that are
defined by the Law and the related Social Security Corporation Board resolutions.
These committees monitor the work of the Social
Security Corporation; the insurance and investment arms.
2. Social Security Investment Board:
The
Social Security Law defines the duties and powers of the Social Security Investment
Board including supervising the executive management of the Social Security Investment Fund.
There are three committees emanating from the Social Security Investment Board:
A. The Audit Committee
B. The Investment Governance Committee
C. The Investment Risk Committee
These committees' duties and powers are defined in the Social Security
Investment Fund and Investment Board bylaw that is issued pursuant to the
Social Security Law.
For governance purposes, the Executive Chairman of the Social Security Investment Fund of the Social Security Investment Fund is not a member in any of the
committees emanating from the
Social Security Investment Board.
3) Internal Control:
There are a number of directorates and units that oversee the Social Security Investment Fund’s
work according to the legislations in force : Risk Management and Strategic Planning Directorate that
submits periodic reports to
the Investment Risk Committee that emanates from the Social Security Investment Board, the Financial Control Directorate that submits periodic financial
performance reports and the financial
statements to the Social Security Investment Board, Internal Audit Unit that submits monthly reports to the Audit Committee that emanates from the Social Security Investment Board, Operations and
Administrative Affaires Directorate that executes all the financial operations, opens accounts and issues payment orders as per the
regulations in force. These directorates
and units execute pre and post auditing as defined by the valid regulations.
4) Legislations:
The Social Security Investment Fund’s work is governed by the Social Security Law, the Social
Security Investment Fund and Investment Board Bylaw, the Financial Bylaw of the
Social Security Corporation, the Procurement Bylaw of the Social Security
Corporation, the Works Bylaw of the Social Security Corporation, Civil Service
Bylaw in addition to all the legislations in force in the Kingdom. In addition,
the Legal Affairs Unit in the Social Security Investment Fund participates in drafting the regulations,
bylaws and polices that govern the Fund’s work.
5) External Control:
The Social Security Investment Fund’s
work is governed by a control set that is exercised by a number of external parties as defined by the valid
regulations: The Audit Bureau conducts post audit in addition to participating in some of the
Social Security Investment Fund’s internal committees as an Observer, the External Auditor that is appointed by the
Social Security Corporation Board, and the Council of Ministers and the Parliament as Social Security Corporation Board is obliged to provide
them with periodic reports on Social Security Investment Fund financial performance and investments.