Abstract:

ABSTRACT A sovereign wealth fund is generally structured on state-owned financial assets to protect citizens’ long-term economic interests. Sovereign wealth funds are owned by states and generally operated by executive branches of government as private business entities. Sovereign wealth funds are beneficial not only to support large-scale projects financially by stabilizing countries’ economies but also to increase investment opportunities in domestic and international financial markets. Legal problems arising nature of the complexity of sovereign wealth funds need to be monitored carefully while adopting effective rules and regulations for risk mitigation. The Turkish Wealth Fund was established as a joint-stock company and subjected to the principles of Turkish private law in 2016. The current regulatory structure of the wealth fund brings some legal problems such as challenges for board members of the wealth fund. The Santiago Principles which provide effective administrative law principles to governments ought to be adopted into the current Turkish legislation to promote accountability and transparency in the domestic financial markets. In particular, the paper proposes that the appointment of the board members should be exercised by the executive and legislative branches collaboratively while board members ought to be accountable for their business operations. In addition, the Turkish Wealth Fund should adopt a vigorous public disclosure regime to increase its transparency in the domestic securities market. Keywords: Sovereign Wealth Funds, Transparency, Accountability, Santiago Principles, Administrative Law Principles

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