Written answers

Thursday, 13 February 2014

Department of Finance

Financial Services Regulation

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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93. To ask the Minister for Finance if any further action is being taken by his Department or the National Treasury Management Agency following the overcharging of the National Pensions Reserve Fund by State Street Global Advisors when acting as portfolio manager on behalf of the National Pensions Reserve Fund; if the amount of the overcharging has been recovered; if any additional compensation is payable; the way the overcharging will impact on the manner in which the NPRF liquidates the discretionary portfolio; and if he will make a statement on the matter. [7452/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by the National Treasury Management Agency (NTMA), as Manager of the National Pensions Reserve Fund (NPRF), that State Street Global Advisors are a separate part of the State Street group from that involved in the overcharging issue. State Street Global Advisors managed a passive equity mandate for the NPRF. However, following the publication of the U.K. Financial Conduct Authority's report on 31 January 2014, their services were terminated by the NPRF.

The full amount of overcharging has been recovered. Following the publication of the U.K. Financial Conduct Authority's report on 31 January 2014, the NPRF Commission will now consider whether there is a case for compensation. With respect to the manner in which the NPRF liquidates investments, the NPRF has taken on board a combination of recommendations made by the Comptroller and Auditor General and internal recommendations to improve on the market standard approach previously used.

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