The Santiago Principles consists of 24 generally accepted principles and practices voluntarily endorsed by IFSWF members.
The Santiago Principles promote transparency, good governance, accountability and prudent investment practices whilst encouraging a more open dialogue and deeper understanding of SWF activities.
Drafted by the International Working Group of SWFs and welcomed by the IMF’s International Monetary Financial Committee in 2008, the objectives of the Santiago Principles are:
- 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 SWFs invest;
- To ensure that SWFs invest on the basis of economic and financial risk and return-related considerations; and
- To ensure that SWFs have in place a transparent and sound governance structure that provides adequate operational controls, risk management, and accountability.
The Santiago Principles demonstrate that SWFs invest as economically and financially oriented entities in both their domestic markets and globally. By doing so, SWFs contribute to the stability of the global financial system, reduce protectionist pressures and help maintain an open and stable investment climate. The knowledge sharing activities of the IFSWF also serve as a tool for continuous improvement and innovation for all our members.