The Libyan Investment Authority (LIA) is committed to implementing real change in the continuous pursuit of institutional excellence. Our immediate priority is to drive forward our comprehensive transformation strategy, aimed at improving governance, transparency and accountability across our organisation.
Working with our international advisors, a primary goal of our transformation program is to restore the possibility of growth, and align the LIA’s investment activities to that of leading sovereign wealth funds (SWF) around the world.
Transformation Programme
Organisation & Infrastructure
- Robust systems and operations across all levels of the organisation.
- Continuous training and upscaling of LIA leadership and employees.
Reporting
- Greater oversight of all holdings and investments.
- Close adherence to the IFSWF’s Santiago Principles.
Board Governance
- Integrated governance structure consistent with best-in-class SWFs.
- Clear and consistent governance framework across all subsidiaries.
Control
- Best-in-class controls across audit, risk, compliance and reporting.
- Strategic asset allocation that reflects risk-return objectives.
Investments
- Strong internal and external investment capabilities to support future investment plans and programmes.
- Optimal investment policies and approach to improve our accountability.
Disputes
Litigation Management
- Focus on litigation that impacts our proper functioning, to reclaim control of the assets of the Libyan people.
Financial Statements & Valuation Exercise
Financial Statements Preparation
- Statements and accounting policies in line with International Financial Reporting Standards.
Valuations
- Greater oversight of our global assets portfolio, including our subsidiaries.
The LIA is a member of the International Forum of Sovereign Wealth Funds (IFSWF), a global network of SWFs committed to working together and strengthening the community through dialogue, research and assessment.
Our transformation agenda reflects the IFSWF’s Santiago Principles, which promote: good governance, transparency, accountability and prudent investment practices. We are committed to observing the highest standards of professionalism and disclosure, and are continuing to take steps to enhance our transparency and openness.
Transformation Programme
Organisation & Infrastructure
- Created a new organisational structure to support the implementation of our strategy and is based on international best practice.
- Detailed set of roles and responsibilities to ensure employees develop a thorough understanding of how their role supports our strategic priorities.
Reporting
- Instituted periodic investment reporting of our marketable investments across the LIA and our subsidiaries.
- Quarterly reporting on our progress towards achieving full compliance with the Santiago Principles.
Board Governance
- Approved the formation of four Board Committees along with their Charters.
- Defined Delegations of Authority, which articulates the delegated roles and decision-making powers of the Board of Trustees, Board of Directors, Board Committees and Executive Management.
Control
- Developed a range of critical policies across several functions and departments, including our enhanced Code of Conduct and Risk Management Policy.
Investments
- Developed an Investment Policy Statement that outlines our investment philosophy, while adhering to the UN sanctions framework.
- Developed an investment proposal to complement the above.
Financial Statements & Valuation Exercise
Financial Statements Preparation
- Appointed an internationally recognised and independent audit firm.
Valuations
- Concluded a series of stress test analysis to assess and address the impact of COVID-19 on our portfolio.
- Conducted a rigorous valuation training programme to improve the financial capabilities of our employees.
As part of our ongoing transformation journey, the LIA will continue to build upon feedback from the UN Security Council Sanctions Committee, to accelerate the move towards a well-conceived smarter sanctions plan that delivers a prosperous future for the Libyan people.
This will be achieved through ensuring that our ongoing work closely adheres to the IFSWF’s Santiago Principles, while continuing to cooperate with all relevant domestic, international and multilateral organisations in the most transparent and open manner.
