Its strange that, in the event of setting aside what is essentially tax money, the money is set into a large fund that is poorly run and susceptible, in man places to corruption and easy looting. While regulations in many cases will only lead to ineffciency, in this one case, it can help.
The activities of sovereign wealth funds should be regulated just like the rest of the worlds funds. Regulation can create a fair and effective environment for all of the money that is placed in those accounts. In the end, it will be beneficial to be regulated as a sovereign wealth fund.
A sovereign wealth fund uses taxpayer money to try to make extra money on the side in the way of investments. These funds absolutely should be monitored and regulated with stringent laws and vast oversight given to independent government agencies that can determine the viability of such funds. Otherwise, a bad investment could literally bankrupt an entire nation.
No, the activities of sovereign wealth funds should not be regulated, because we do not have jurisdiction to regulate them. The United States can only regulate things that happen on its soil. The United States cannot go around controlling or taxing financial transactions that occur in other places. There are jurisdictional issues at play that would prevent it.
The activities of sovereign wealth funds should not be regulated. We are way to eager to regulate something that should be no control to us at all. I do not know if we do this for financial gain or just to pump our ego but I think we should not always be sticking our nose where it does not belong.