Top US official says foreign state-run funds require 'vigilance'

0 Comments | AFP, January, 2008

DAVOS, Switzerland (AFP) — The deputy secretary of the US Treasury said Thursday that the rise in power of sovereign wealth funds required "vigilance" from the US government.

Speaking during a debate in Davos, Deputy Secretary Robert Kimmitt told delegates: "The growth in the size and number of sovereign wealth funds is such that vigilance is required."

He said that Group of Seven finance ministers had asked the International Monetary Fund and the World Bank to consult with sovereign wealth funds (SWFs) and attempt to draw up a voluntary code of practice.

The results would be reported back at a meeting early this year and a code could be concluded before year end, he said.

Elsewhere, the Organisation for Economic Cooperation and Development, a...