14. Related Parties
14.1 Minister for Finance
Ownership of the Fund vests in the Minister for Finance pursuant to section 38(3) of the NTMA Act 2014.
Under section 46(1) and 46(2) of the NTMA Act 2014, the Minister for Finance may make payments into the Fund from the Central Fund. Where the Minister for Finance proposes to make a payment into the Fund, the Houses of the Oireachtas must pass a resolution approving the payment before the Minister for Finance can process the payment. Transactions between the Fund and the Minister for Finance during the year are detailed in note 11.
14.2 National Treasury Management Agency
The Fund is controlled and managed by the Agency pursuant to section 41(1) of the NTMA Act, 2014.
The NTMA Investment Committee (“the Investment Committee”) is a statutory committee provided for by the National Treasury Management Agency Act, 1990 (as amended). The Investment Committee assists the Agency in the control and management of the Fund by making decisions about the acquisition and disposal of assets within such parameters as may be set by the Agency, advising the Agency on the investment strategy for the Fund and overseeing the implementation of the investment strategy. The Agency has delegated investment decisions up to €150m to the Committee. Proposed investments in excess of €150m are referred to the Agency with a recommendation from the Investment Committee.
The Investment Committee is required to comprise of two appointed members of the Agency and not more than five persons who are not members of the Agency but who have acquired substantial relevant expertise and experience and who are appointed by the Agency with the consent of the Minister for Finance.
Under section 48 of the NTMA Act 2014, the expenses of the Agency are defrayed from the Fund. For the year ended 31 December 2017, these expenses were €12.5m (2016: €10.4m).
Key management personnel
The Fund is controlled and managed by the Agency. The key management personnel and their compensation are disclosed in the Agency’s Administration Account Financial Statements.
14.3 Strategic Banking Corporation of Ireland
The Fund and the Strategic Banking Corporation of Ireland (the “SBCI”) are both under the control of the Minister for Finance. As part of the Directed Investments, under the direction of the Minister for Finance, the Fund provided a loan facility of €240m to the SBCI in 2015. In 2016, €25m of this facility was drawndown.
During 2017, the €25m loan the Fund had issued to the SBCI was transferred to the Minister (see note 11.2).
At 31 December 2017, the outstanding commitment on the loan facility is €215m and this is held within the Directed Investments cash balance (see note 12).
14.4 Other Government controlled entities
The Central Bank of Ireland and Allied Irish Banks plc are related parties of the Fund as both are under the control of the Minister for Finance. Cash held by the Fund at the Central Bank of Ireland is disclosed in note 12. The Fund’s investment in AIB and transactions in respect of AIB during the year are disclosed in note 8.