GREATER ACCOUNTABILITY PAYS OFF IN GREATER TRUST
Good governance is essential for any organisation. This is probably more so in the public sector where proper structures and processes need to be in place to control the use of public funds.
Good Governance Makes Good Sense
Corporatisation of agencies and their subsidiaries means that public sector holding companies are increasingly responsible for the management of large cash reserves. Prudent investment of these funds returns value to the public, and it has become a necessity that this is done in compliance with corporate investment guidelines.
Compliance rules, such as concentration limits and single issuer limits, determine how investments are made. However, these rules mean nothing if they are not followed.
Instilling a System of Compliance
Public agencies are able to leverage the CS Lucas solution to manage both their treasury and investment operations. Rules are automatically checked to avoid unnecessary breaches. Any misappropriation can be detected and all transactions are fully auditable. This creates a culture of greater accountability over how the cash pool is being invested.
Key features that help ensure control and compliance include:
- Compliance rules
- Counterparty exposure limits
- Inter-group funding
- Portfolio Investment management
- Trade control workflow