On The International Cooperative Supervision On Sovereign Wealth Funds

In recent years over the past few low-key appearance Sovereign Wealth Funds (SWFs) set off a worldwide storm. At the same time its own has also been an unprecedented expansion in size. It has aroused a panic in western countries when China, Russia and other major powers have set up their own SWFs. They even consider SWFs as a "scourge." For the political factors and opacity of SWFs, receiving countries of SWFs generally commit to the development of unilateral particular regulatory norms in SWFs investment, improve the standard of review and the barriers to entry of investment. These unilateral particular regulatory norms have hindered the normal investment activities of SWFs, which is not conducive to the healthy development of SWFs. Therefore, in the context of international cooperation it is necessary to develop the documents of international cooperative supervision on SWFs.In order to solve these problems, the idea of building multilateral international cooperative supervisory mechanisms has been gradually put on the agenda. The United States and some countries which own SWFs met in Washington to reach the "Washington agreement". IMF also introduced through the efforts of the "Santiago Principles", and OECD issued the subsequent "OECD Declaration." It is undeniable that the explorations above of SWFs have made their own contributions to international cooperation in supervision, but they have big flaws of themselves, and failed to form a viable integral program in supervising the SWFs. They are just some non-mandatory recommendations and framework for principles.As the existing lack in supervising SWFs, it is imperative to build the framework of the international cooperative supervision of SWFs, while specific principles and steps are necessary. Ultimately the international cooperative supervision on SWFs can be cooperated by WTO.