Santiago Principles

The Santiago Principles are a set of 24 voluntary guidelines that assign "best practices" for the operations of Sovereign Wealth Funds (SWFs). The principles were proposed in 2008 through a joint effort between the International Monetary Fund (IMF) and the "International Working Group of Sovereign Wealth Funds" (IWG-SWF). The International Working Group has since been replaced by the "International Forum of Sovereign Wealth Funds" (IFSWF). So far 25 nations have signed onto the principles.

Overview

According to the IFSWF, the creation of the Santiago Principles was driven by the following goals for SWFs:

To help maintain a stable global financial system and free flow of capital and investment;
To comply with all applicable regulatory and disclosure requirements in the countries in which they invest;
To invest on the basis of economic and financial risk and return-related considerations; and
To have in place a transparent and sound governance structure that provides for adequate operational controls, risk management, and accountability.

The Santiago Principles contribute to the IFSWF’s objective for SWFs by monitoring three important areas – legal framework, institutional framework and governance framework, and investment policies and risk management.

External links

Santiago Principles
International Forum of Sovereign Wealth Funds Official body for sovereign wealth funds

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