Generally Accepted Principles And Practices - GAPP

Dictionary Says

Definition of 'Generally Accepted Principles And Practices - GAPP'


Standardized business procedures related to the operation of sovereign wealth funds (SWFs). The generally accepted principles and practices (GAPP), agreed upon by 23 countries with SWFs in October 2008, state that SWFs will pursue financial, rather than political, agendas. What's more, SWFs abiding by the GAPP vow to make their objectives, investment practices and structures transparent to all.

Also known as known as the Santiago Principles.

Investopedia Says

Investopedia explains 'Generally Accepted Principles And Practices - GAPP'


SWFs are defined as "special purpose investment funds or arrangements, owned by the general government" and are designed to "hold, manage or administer assets to achieve financial objectives." The 24 Santiago Principles simply provide a framework for this in three key areas: legal, institutional, and investment and risk.

Furthermore, the International Working Group (IWG), which drafted the Principles, has agreed to consider ways to monitor progress and refine the Principles as new needs and challenges arise.

comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center