The CIPFA Treasury Management Code
About this course
The 2021 Code in detail: the four key principles, the 12 TMPs, the new ESG and knowledge-and-skills requirements, and the line between treasury and non-treasury investments.
What you'll learn
- What the Code is
- Adoption & Policy Statement
- The 12 TMPs — overview
- Investment categorisation
- ESG & Knowledge/Skills
- Operating the Code
Part of these pathways
Related courses
- The statutory framework
- The CIPFA Prudential Code
- The 12 TMPs in detail
- Prudential Indicators in detail
- Investments for service & commercial purposes
- Commercial investment: the cautionary cases
Common questions
What is CIPFA Standard of Professional Practice?
CIPFA's professional-conduct standard for members involved in treasury management. Adoption clause 3 binds CIPFA-member treasury officers to it. Matters in disciplinary proceedings if treasury misconduct is alleged.
What is ESG risk management (TMP1.13)?
New section added to TMP1 Risk Management in the 2021 Code. Requires consideration of environmental, social and governance risks in counterparty selection, instrument choice, and portfolio construction. The first formal mention of ESG in CIPFA's treasury Code.
What is Investment categorisation (treasury / service / commercial)?
Formal 2021 distinction. Treasury investments arise from cashflow management. Service investments are held primarily to deliver a council service. Commercial investments are held primarily for financial return. Different governance, different disclosure. Service and commercial investments require Investment Management Practices (IMPs).
What is Investment Management Practices (IMPs)?
New in the 2021 Code. Apply specifically to investments held primarily for financial return that are not part of normal treasury management — e.g. commercial property portfolios. Mirror the TMP structure but cover the distinctive risks of non-treasury investments.
What is Key Principle 1?
Public service organisations should put in place formal and comprehensive objectives, policies and practices, strategies and reporting arrangements for the effective management and control of their treasury management activities.
What is Key Principle 2?
Policies and practices should make clear that effective management and control of risk are prime objectives. Risk appetite should form part of the annual strategy. Priority should be given to security and portfolio liquidity when investing treasury management funds — yield is not the prime objective.