Scottish National Investment Bank

We asked for views to help inform and further refine how the Scottish National Investment Bank will operate, how its relationship with Ministers and the wider population will develop and how its strategic direction will be set by missions.

Respondents were asked to give their views on the proposed objectives and purposes of the Bank, and share views on the statement of the Vision for the Bank. Responses generally fell within 5 broad themes identified across all 16 questions:

• The opportunity and the Bank’s objectives and purpose
• The focus for investment activities
• Operating model, classification and capitalisation
• Governance and relationship with Ministers
• The Bank’s staffing and employment arrangements

The consultation was open from 5 September to 31 October 2018. In addition, nine stakeholder workshops and twelve bilateral meetings were held with key stakeholders.

The consultation received 1,443 responses comprising of 40 responses from organisations, 1,383 responses as part of a campaign from Friends of the Earth Scotland and a further 20 responses from individuals. We published the responses on 28 November 2018.

Overall respondents supported the creation of the Bank, the Bank’s objectives and purpose, seeing it as an opportunity to support and grow Scotland’s economy. A range of perspectives were provided, with many supporting the Bank’s vision to move to a low carbon, high-tech, connected, globally competitive and inclusive economy.

A significant number of respondents were supportive of the Bank’s proposed investment activities, with many advocating the Bank’s mission-based approach, the investment strategy and ethical commitment. There was very strong support for the Bank’s proposed mission to support Scotland’s transition to a low carbon economy.

While a range of views were expressed, the overarching opinion was that the Bank’s culture, governance, approach to businesses and individuals must be different to that of other financial institutions.

Several respondents were supportive of the Bank’s operational approach. A significant number of respondents supported the Bank’s governance arrangements and the fact that the Bank should be accountable to Scottish Ministers, while maintaining operational and administrative independence.

Some respondents raised concerns over whether the proposals for capitalisation were sufficient to support the Bank but there was recognition that the proposed level of capitalisation was ambitious and achievable. Others remarked that it would be important that the Bank was not subject to political pressure.

On remuneration, there was recognition that the Bank will operate within the financial services sector and to succeed will need to be competitive to attract the right skills and expertise. However, respondents also felt this needs to be balanced with the Public Sector Pay Policy.

We commissioned an independent analysis of the consultation responses, including views gathered during the stakeholder workshops and bilateral meetings. You can read this here.

The Scottish Government will be introducing legislation to support the establishment and capitalisation of the Bank in late February 2019. The responses are being considered carefully to help inform the content of the legislation and shape the structure of the new body.

We will continue to engage with stakeholders as we develop the proposals to ensure we build an institution with the right values, vision and purpose.