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Investment management system – context and rules

The 'Investment Management System' means the processes, rules, capabilities, information and behaviours that work together to shape the way investments are managed throughout their life cycles.

The Investment Mangement System is complex, with interrelated cycles spanning months or years. The system has to effectively convert business unit, agency, sector and all-of-government needs into outcomes in a way that gets the best value for New Zealand (given financial and other constraints).

Cabinet has investment decision rights on all investment proposals where the investment requires new Crown funding or support, is assessed as high risk or has significant policy issues.

Cabinet must also be given the opportunity to consider investment proposals that have significant fiscal and policy implications or could affect the government's reputation in the marketplace. 

Cabinet has laid out its requirements and expectations in the Cabinet Manual and in Cabinet Office circulars.  These set the context, rules and roles for the investment management system:

Cabinet Office circulars set out more detailed requirements:

Chief Executives must ensure agencies adopt and apply, as good management practice, Treasury guidance on investment management, including business cases.

Boards of Crown entities and companies should adopt and apply, as good management practice, Treasury guidance on investment management, including business cases.

Last updated: 
Friday, 26 March 2021