http://www.bloomberg.com/news/2014-08-17/norway-fund-told-to-forget-riskier-assets-until-oversight-fixed.html
Norway’s $880 billion sovereign wealth fund can’t be allowed to chase riskier assets until lawmakers fix the oversight gaps that emerged in connection with its purchase of Formula One shares, according to the biggest party in the nation’s parliament.
“The Formula One case was quite an eye-opening experience for politicians who are dealing with issues regarding this fund,” Marianne Marthinsen, the Labor Party’s finance spokeswoman, said in an interview in Oslo on Friday. “It illustrates that we need a strong system of monitoring.”
The comments show the minority Conservative-led government will struggle to find backing in the legislature to avoid changes in how the world’s biggest wealth fund is run. Finance Minister Siv Jensen said last week she saw no need for a change in the fund’s oversight and praised its management.
Calls for tougher standards have grown louder since the wealth fund bought its way into the closely held auto racing group in a move that lawmakers say may have overstepped its investment mandate. The fund can only buy unlisted equity if a company is planning an initial public offering. Formula One’s IPO was subsequently canceled.
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