Sovereign wealth funds invest across a range of asset classes and engage in capital markets and loan transactions. Their engagement in these activities is consistent with that of any other commercial actor. However, the connection between a sovereign wealth fund and the State by which it has been created raises the question of whether the fund will benefit from state immunity.
Andrew Cannon, Partner and Hannah Ambrose, Senior Associate, have written an article for the Journal of International Banking and Financial Law considering the circumstances in which immunity may be asserted by sovereign wealth funds as an effective defence to the exercise of jurisdiction by the courts and from execution of judgments and arbitral awards against the fund's assets. The article also considers the ways in which contractual parties can mitigate the risk of immunity preventing effective enforcement.
The article can be accessed here.
This article first appeared in the December 2020 issue of Butterworths Journal of International Banking and Financial Law and is reproduced with the kind agreement of the publishers.
If you have any questions or would like discuss any aspect of this post, please contact Andrew Cannon, Partner, or Hannah Ambrose, Senior Associate, or your usual Herbert Smith Freehills contact.
Andrew Cannon
Partner, Co-Head, Public International Law Practice, Deputy Head, Global Arbitration Practice, London
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Andrew Cannon
Partner, Co-Head, Public International Law Practice, Deputy Head, Global Arbitration Practice, London