Instead, the world’s biggest wealth fund will get a separate board inside the central bank to oversee it, thenewspaper said, citing unnamed sources with knowledge of the decision.
A committee led by former central bank governor Svein Gjedrem had argued that the fund had grown too big and too complex for the bank to oversee. The government will put the proposal to parliament later this month, for a final decision.
The central bank is keen to maintain oversight of the fund, unless the investor expands into new asset classes such as private equity and unlisted infrastructure, in which event the bank has said it may need to cede control.
A request by the wealth fund to start investing in private equity was rejected by the government in April, based on concerns that expanding into the asset class would cause issues of transparency and potentially raise costs. The government did, however, open up for possibly investing in renewable energy infrastructure as part of the environmental mandates.
Frontpage right now
Having difficulties stretching your in-house resources to meet both regulatory demands and plans for digital expansion? Tried hiring help and couldn't find it locally? The founders of Nordic financial sector software consultancy Nor Associates are basing their business case on the idea that many local financial firms are having exactly these problems.
Sparinvest has put a brand-new strategy in place to see it through the next four years. By the end of 2022, it must have gathered in more than DKK 60 billion in extra assets under management -- and in the future, most of its business growth is to come from institutional investors. CEO Jørgen Søgaard-Andersen tells AMWatch's siter site, FinansWatch, all about the plan.