GAPP stands for Generally Accepted Principles and Practices, which are a set of standardized business procedures designed to promote good governance and transparency in the operation of Sovereign Wealth Funds (SWFs). These principles were established by the International Working Group of the Sovereign Wealth Funds (IWG) in October 2008 and are underpinned by four guiding objectives1:
- Maintaining Financial Stability: SWFs are to invest on the basis of economic and financial risk and return-related considerations, helping to maintain a stable global financial system and ensure the free flow of capital and investment.
- Compliance and Transparency: SWFs must comply with all applicable regulatory and disclosure requirements in the countries where they invest and have in place a transparent and sound governance structure that provides for adequate operational controls, risk management, and accountability.
- Economic and Financial Risk: Investments are to be made on an economic and financial basis, rather than for political purposes.
- Governance Structure: SWFs are to have a governance structure that ensures transparency and sound practices.
GAPP provides a framework for these guiding principles in three key areas: legal, institutional, and investment and risk. It is maintained and promoted by the International Forum of Sovereign Wealth Funds (IFSWF), which encourages its members to endorse and implement these principles in their governance and investment practices1.
11/12/2024 07:18pm
