The European Commission, Singapore, Deloitte Touche Tohmatsu, and others have commended the International Working Group of Sovereign Wealth Funds (IWG) on its agreement on the “Santiago Principles,” a set of Generally Accepted Principles and Practices for Sovereign Wealth Funds.
“I believe that by individually implementing the set of generally accepted principles and practices voluntarily agreed, and that are presented here today, SWFs will prove that they are responsible and reliable players in the global financial system,” says Joaqun Almunia, European Commissioner for Economic and Monetary Affairs.
“A key component of the GAPP, involving the need for adequate public disclosures, will enhance understanding of their roles as financially-orientated players whose investments are aimed at maximising risk-adjusted returns,” says Tharman Shanmugaratnam, Finance Minister of Singapore.
“GAPP for sovereign wealth funds is potentially a real watershed event in promoting better understanding of sovereign wealth funds (SWFs) in their home countries and in the countries where they choose to invest.
“These principles could potentially have a significant impact in markets around the world as they facilitate capital flows and enhance liquidity,” says Jerry Leamon, Deloitte Global Services Leader. “We hope to see many of the funds sign up to these principles.”