Regulatory Update: IOSCO

IOSCO issues recommendations to improve liquidity risk management for investment funds

The International Organisation of Securities Commissions (IOSCO) has published two final reports in relation to risk management of investment funds:

  • Recommendations for Liquidity Risk Management for Collective Investment Schemes. Replacing the liquidity risk management framework contained in IOSCO’s 2013 report Principles of Liquidity Risk Management for Collective Investment Schemes.

 

  • This document details recommendations for managing the liquidity of collective investment schemes (responsible entities) ensuring liquidity is managed to safeguard and protect investors’ Additional guidance is provided for securities regulators to promote good liquidity management practices for collective investment schemes. The implementation of the recommendations may vary from jurisdiction to jurisdiction, depending on local conditions and circumstances. IOSCO intends to assess implementation across relevant jurisdictions in two to three years’ time.

 

  •  Open-ended Fund Liquidity and Risk Management – Good Practices and Issues for Consideration. This report details practical information on potential measures to address liquidity risk management. The good practice(s) identified in this report will provide responsible entities with a benchmark for assessing their own practices, outcomes, and responsible management of liquidity.

 

Further information:

To read the document please follow this link: https://www.iosco.org/news/pdf/IOSCONEWS486.pdf

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Please Note: This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues or transactions.

 

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