Adherence of the Government Pension Fund Norway (GPFN) to the Santiago principles

The Santiago Principles or Generally Accepted Principles and Practices (GAPP) is an initiative1 of the International Forum of Sovereign Wealth Funds (IFSWF).

The Principles recognise the importance of Sovereign Wealth Funds (SWF) to demonstrate to their home countries and domestic stakeholders, to the countries in which they are invested and to the international financial markets in general that such investment vehicles are properly set up and that investments are made on an economic and financial basis.

The Principles are underpinned by the following guiding objectives for SWFs:

1. To help maintain a stable global financial system and free flow of capital and investment;
2. To comply with all applicable regulatory and disclosure requirements in the countries in which the SWFs invest;
3. To invest on the basis of economic and financial risk and return-related considerations; and
4. To have in place a transparent and sound governance structure that provides for adequate operational controls, risk management and accountability.

The Government Pension Fund comprises the Government Pension Fund Global (GPFG) and the Government Pension Fund Norway (GPFN). The GPFN and the GPFG do not constitute separate legal entities. The Ministry of Finance has reviewed the legal and operational superstructure related to the management of the Funds.

This self-assessment documents the adherence of the GPFN to the Santiago Principles. For the adherence of the GPFG to the Santiago Principles please see the stand-alone self-assessment for the GPFG.

Key sources of information are highlighted for each principle. On the aggregate level the Ministry would like to draw the attention to the following formative documents, to which reference is made throughout:

Government Pension Fund Act

Folketrygdfondet Act (in Norwegian only)

Management mandate for the Government Pension Fund Norway

Guidelines for Observation and Exclusion from the Government Pension Fund Global

Regulation on Risk Management and Internal Control – applies to Folketrygdfondet to the extent suited (in Norwegian only)

Regulation on Financial Reporting at Folketrygdfondet (in Norwegian only)

Further information on the Fund and the sources referred to in this self-assessment are available on the Ministry of Finance’s and Folketrygdfondet’s websites:

• www.government.no/gpf
• www.ftf.no