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02 May 2013

OECD: Draft high-level principles of long-term investment financing by institutional investors


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The principles are designed to assist OECD, G20 and other interested countries to facilitate long-term investment by institutional investors, particularly among those institutions that typically have long duration liabilities and consequently can consider investments over a long period.


These Principles aim to help policy-makers design a policy and regulatory framework which  encourages institutional investors to act in line with their investment horizon, enhancing their capacity to provide a stable source of capital for the economy and facilitating the flow of capital into long-term investments such as infrastructure. The principles address primarily regulatory and institutional impediments to long-term investment by institutional investors and aim to avoid interventions that may distort the proper functioning of markets. The proposals are intended to be in line with existing regulatory standards for institutional investors, such as those addressing the prudential regulation of investment and solvency. The principles are non-binding and may be applicable to all or only some categories of  institutional investors. Their implementation would also require careful consideration of the different business models and particularities of the different kinds of institutional investors.

The Principles will be developed by the newly-created OECD Joint Task Force on Institutional Investors and Long-Term Financing. This Task Force, working under the aegis of the OECD Committee on Financial Markets and Insurance and Private Pensions Committee, is open to all G20 countries and relevant international organisations. The process will include numerous consultations with the relevant  stakeholders. The process will follow a tight timeframe in order to provide a final draft of Principles by the July meeting of G20 Finance Ministers and Central Bank Governors before being transmitted to the G20 Leaders Summit in September.

Full document



© OECD


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