Deloitte Touche Tohmatsu has issued a new point of view (POV) on the Generally Accepted Principles and Practices (GAPP) for Sovereign Wealth Funds (SWFs), a set of voluntary principles agreed to by the International Working Group (IWG) of Sovereign Wealth Funds on 2 September 2008.

The 24 Principles, known informally as the "Santiago Principles" after the city in which the IWG drafted the final version of the GAPP, offer guidelines covering governance, accountability, transparency, and conduct of investments for SWFs. The 26 SWFs that make up the Principles include permanent observers from Oman, Saudi Arabia, Vietnam, the OECD, and the World Bank.

The Deloitte POV provides:

• A brief history on the development of SWFs
• A summary of the circumstances leading to the creation of the Principles
• The text of the Principles
• An initial assessment of their quality and potential impact.

The Santiago Principles mark a significant milestone in rationalizing the integration of SWFs into the global capital markets. A robust implementation of the GAPP should go far towards resolving questions about the transparency, accountability, and operations of SWFs. SWF adoption and implementation of the principles should also provide Deloitte member firms with significant opportunities to expand their relationships with existing or prospective clients in this sector.

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