1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).
1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.
1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.
LAWS (published by the National Assembly/Congress & the Executive Branch
– President). Law 38 of June 5, 2012, modified through Law 51 of October 10, 2018 (“the Law”)– is the law that creates the FAP, enacted by the National Assembly of Panama. The Law establishes that the governing bodies of the FAP are:
The National Assembly – legislative authority.
The Ministry of Economy and Finance (“MEF”) –Trustor (asset owner), representative of the Executive Branch of the Rep. of Panama.
The Board of Directors of the FAP – main decision-making body of the Fund;
The Secretariat – provides executive, technical, and financial leadership to the Board of Directors;
Banco Nacional de Panamá (“BNP” or “The Trustee”)
The Supervisory Commission – reviews the Board of Director’s actions; represents the civil society; and
The General Comptroller of Panama –internal auditor of the FAP.
EXECUTIVE DECREE (published by the Executive Branch, through the MEF)
Executive Decree No. 1068 of Sept. 6, 2012 (“the Executive Decree”) – that regulates The Law, published by the MEF.
INVESTMENT DIRECTIVES (published by the MEF)
Investment Directives, issued by the MEF (2012, 2014 and 2016), sets forth the general investment guidelines to be followed by the Board of Directors of the FAP; allows for the Board to modify such Directives subject to approval from the MEF.
INTERNAL DIRECTIVES OF THE BOARD (published by the Board of Directors of the FAP)
The Agreement establishes the Internal Directives of the Board of Directors of the FAP which describes the composition, functions, and responsibilities of: The Chairman of the Board, Directors, the Trustee, MEF, and Secretariat.
INVESTMENT POLICIES & STANDARDS (published by the Board of Directors of the FAP)
Investment Policies and Standards;
Annual Investment Plan & Strategic Asset Allocation
BIDDING PROCESS AND CUSTODY DIRECTIVES (published by the Board of Directors of the FAP)
The Bidding Process Directives, Agreement No. 11 of August 31, 2015, establishes the general guidelines for contracting banks, custodians, asset managers, consultants, or any other financial intermediary
Custody Services Directives, Agreement No. 16 of June 29, 2017, establishes the procedures that the custodian must follow.