The Quebec government Tuesday announced a series of measures designed to improve transparency, accountability and governance at the Caisse de dépôt et placement du Québec, following a year of poor investment performance.
The government is demanding that the Quebec pension giant appear before the Commission des finances publiques each year to present its annual report and answer questions.
The government is ordering the Caisse to prepare a strategic plan setting out its vision and priorities every three years, starting in 2010, and to produce a risk management report and a report on its remuneration policy.
Also, the government is asking the chairman of the Caisse to prepare a report on the actions taken to improve the governance of its board of directors.
“The measures we are announcing today fully maintain the independence of the Caisse, but the Caisse will now be more accountable and transparent than it has ever been in its history,” said Raymond Bachand, Minister of Finance and Minister of Economic Development, Innovation and Export Trade. “The time has come to let the employees of the Caisse concentrate on their work, which is to manage the funds of depositors. It is now time to look to the future, a future that I view as promising and marked by greater prudence.”
Bachand noted that the causes of the Caisse’s poor performance are now well known, including its holdings of asset-backed commercial paper and real estate assets, and the risks taken within the “Asset Allocation” portfolio. “These causes have prompted the Caisse to challenge itself and make changes to improve its investment practices and risk management,” he said.
IE
Quebec unveils measures to improve Caisse accountability
Pension fund ordered to appear before public finance commission
- By: James Langton
- May 27, 2009 May 27, 2009
- 12:35