Abstract
As the influence of Sovereign Wealth Funds (SWFs) is increasing in the world economy, the legal problems between the possessing States and recipient States become very important. The famous Santiago Principles are self-pledges of the governance and activities of SWFs by the possessing States and do not regulate the legal problems between the possessing States and the recipient States. This article considers the following relevant problems from the point of international law: (A) restrictions on foreign investment, (B) sovereign immunity, (C) taxation and (D) responsible investment. As to (A), although restrictions on foreign investment for national security reasons is generally permitted under international law, they should be guided by the principles of non-discrimination, transparency of policies and predictability of outcomes, proportionality of measures and accountability of implementing authorities. As to (B), when SWFs are involved in a civil action concerning holding shares in a company, they canno...
Highlights
As the influence of Sovereign Wealth Funds (SWFs) in the world economy has been increasing, legal regulation of SWFs has become a matter of interest among the recipient States.[1]
As to (C), there is no established rule of customary international law whether SWFs are granted exemption from taxation in recipient States
(A) Restrictions on foreign investment One of the main reservations recipient States have over SWFs is that SWFs might act based on non-economic or political motivation
Summary
As the influence of Sovereign Wealth Funds (SWFs) in the world economy has been increasing, legal regulation of SWFs has become a matter of interest among the recipient States.[1]. As to (C), there is no established rule of customary international law whether SWFs are granted exemption from taxation in recipient States.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
