Future Fund appointment may test perceptions
In what represents an unusual move by a Commonwealth agency, a key executive of the company appointed as the asset consultant of the Future Fund has been appointed the fund’s chief investment officer.
Watson Wyatt, which in 2005 was appointed the asset consultant to the Future Fund, announced that the head of its Investment Consulting Practice in Australia, David Neal, had taken up the Future Fund chief investment officer role.
The appointment is regarded as unusual because of the corporate governance principles required of Commonwealth agencies when dealing with key suppliers and consultants.
Those principles, outlined by the Australian Public Service Commission, state that Government agencies should “ensure there are not actual or perceived conflicts of interest by including full and frank disclosure of any past, present or proposed future relationships, connections or interests with bidders”.
While there are no strict guidelines specifically prohibiting the employment of key personnel from a supplier to a Government agency, there are clear-cut rules prohibiting those suppliers from employing key people from within the Government agency.
It is not yet known how Neal’s appointment will impact Watson Wyatt’s ongoing arrangements with the Future Fund or whether it will be raised as an issue by other asset consulting firms.
In the meantime, Watson Wyatt has announced Graeme Miller will be replacing Neal as head of the Australian Investment Consulting Practice.
AUTHOR
Mike Taylor
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