SWF Radar LegislationAndRegulation

Thomson Financial reports that, “The European Commission had an orientation discussion on sovereign wealth funds at its meeting today, a spokesman said, though he added talks were at a very early stage and were exploring a variety of options.”

Thomson Financial reports that, “The rapid growth of sovereign wealth funds ‘should not cause alarm’, but they need to be carefully examined because of possible political motives behind their investments, US Deputy Treasury Secretary Robert Kimmitt said today.”

Global Pensions reports that, “Canada Pension Plan (CPP) has warned pension schemes could face restrictions on alternative investments if governments move to include them in legislation restricting investment by sovereign wealth funds.”

Kommersant (Russia) reports that, “European Monetary Affairs Commissioner Joaquin Almunia confirmed yesterday the EC intention to limit investments of sovereign wealth funds into the assets in Europe.”

Reuters reports that, “Government-controlled wealth funds, worth $2 trillion and growing fast, are muddling the debate over how the United States can attract foreign investment without sacrificing national security.”

The Times of India reports that, “The alarm bells on sovereign wealth funds may not be ringing just yet in India but [the] government, [the Reserve Bank of India] and [the Securities and Exchange Board of India] are planning to review the norms related to these government-owned investment vehicles, estimated to have over $2.5 trillion assets under management. ”

The Business Standard reports that, “Putting special curbs on the sovereign wealth funds (SWF) owned by foreign governments' operations in India may be difficult to implement, feel finance ministry officials.”

The Economic Times (India) reports that, “The report that government is seriously considering whether a special investment framework is required to regulate sovereign wealth funds (SWFs) comes hot on the heels of the National Security Adviser voicing apprehension about such funds.”

The Globe and Mail reports that, “There is growing concern, especially in the United States, that the sovereign wealth funds of oil-producing nations could threaten stability of the international financial system, and could be used to further political ambitions of their governments rather than focus on investment returns.”

RGE Monitor reports that, “This [German] legislation will probably complement whatever EU level legislation and voluntary codes of conduct are negotiated.”