THE US, Singapore and Abu Dhabi have agreed on a set of investment principles which they hope will be an example for others to follow:
SWFs should:
Base investment decisions on commercial grounds, rather than geopolitical goals, and formally state that they do so. Disclose more about their purpose, investment objectives, institutional arrangements and so on. Have strong governance structures, internal controls, and operational and risk management systems. Compete fairly with the private sector. Respect regulatory and disclosure requirements. Host nations should:
Not erect protectionist barriers. Ensure predictable investment frameworks and rules that are public, clear and supported by a strong and consistent rule of law. Not discriminate among investors. Respect investor decisions by being unintrusive. Any restrictions imposed for national security reasons should be proportional to the genuine risks.
