The Scottish Government insists the Scottish National Investment Bank (SNIB) is operating lawfully even though Scottish ministers have not established an advisory board for the Bank, as they are legally obliged to do.
In June, Disruption Banking revealed that under Section 29 of the Scottish National Investment Bank Act 2020, “Scottish Ministers must establish and maintain an advisory board to provide [the SNIB] with advice on the Bank’s objects, conduct, and performance.” Almost three years after this Act was passed, no such advisory group has been established.
After Disruption Banking raised questions about the lawfulness of the SNIB’s operations in light of this, Douglas Lumsden, a Member of the Scottish Parliament for North East Scotland, raised the issue in Holyrood.
Lumsden did not receive an immediate reply in Holyrood but has now received a response from the Scottish Government, outlining their belief that “the role of the Advisory Group has no bearing on the legality of the operation of the Bank.”
They added that “now the Bank is fully established, and has a growing portfolio of investments, work is underway to create the advisory group […] the Scottish Government is considering options for remit and membership.”
Disruption Banking understands that questions may now be raised as to whether Scottish Ministers have personally breached their duties by failing to establish the advisory group.
Author: Harry Clynch
