Explain what the legal, regulatory and tax constraints on each type of institutional investor concentrate on

Pension funds face rules on funding, fiduciary duty, prudence and sometimes concentration or asset limits, and are usually tax-exempt. Sovereign wealth funds are governed by their founding laws and public accountability; they may be tax-exempt at home and may seek exemption abroad. Endowments and foundations must follow donor restrictions and charitable law, often enjoy tax exemption, and some foundations must distribute a minimum share of assets each year to keep that status. Banks are regulated on capital adequacy, liquidity coverage and leverage, which restricts risky assets. Insurers face risk-based capital or solvency regimes that charge more capital for riskier holdings, influencing allocation. A trap is ignoring capital charges when proposing assets for insurers.