General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
February 01, 2018

IOSCO issued a report on recommendations and good practices to improve liquidity risk management of open-ended collective investment schemes. To supplement its recommendations, IOSCO also issued a report that provides practical information, examples, and good practices on open-ended fund liquidity risk management.

Recommendations for Liquidity Risk Management for Collective Investment Schemes. This report sets out recommendations to entities responsible for managing the liquidity of collective investment schemes to ensure that liquidity is managed to safeguard and protect the interests of investors, even during stressed market conditions. The report also includes additional guidance by IOSCO to securities regulators to promote good liquidity management practices for collective investment schemes. This final report replaces the liquidity risk management framework contained in the 2013 IOSCO report titled "Principles of Liquidity Risk Management for Collective Investment Schemes." This constitutes the final step in the response of IOSCO to address the FSB-identified potential structural vulnerabilities in the asset management sector. The final report builds on responses received from the July 2017 consultation of IOSCO on liquidity risk management recommendations for collective investment schemes. IOSCO expects securities regulators to ensure effective implementation of the recommendations and promote their application by responsible entities. IOSCO intends to assess implementation of these recommendations across relevant jurisdictions in the next two to three years.

Open-Ended Fund Liquidity and Risk Management: Good Practices and Issues for Consideration. This report is intended to assist regulators, the industry, and investors. For regulators, it can act as a reference guide that illustrates how various jurisdictions regulate liquidity risk practices within their remit. For the industry, the examples describe where, when, and how certain tools have been used in the past and how they can be used in the future. Additionally, the report describes good practices for liquidity risk management throughout the life cycle of a fund. For investors, this document outlines scenarios in which an asset manager may use liquidity management tools to manage liquidity issues in certain funds.

 

Related Links

Keywords: International, Securities, Liquidity Risk, Systemic Risk, Collective Investment Schemes, IOSCO

Related Insights
News

US Agencies Propose Revisions to FFIEC Reports 031, 041, 051, and 101

US Agencies (FDIC, FED, and OCC) propose to extend for three years, with revision, FFIEC 031, FFIEC 041, FFIEC 051, and FFIEC 101.

February 21, 2019 WebPage Regulatory News
News

OFR Adopts Data Collection Rule on Centrally Cleared Repo Transactions

OFR adopted a final rule to establish a data collection covering centrally cleared funding transactions in the U.S. repurchase agreement (repo) market.

February 20, 2019 WebPage Regulatory News
News

FHFA Finalizes Rule on Federal Home Loan Bank Capital Requirements

FHFA published, in Federal Register, the final rule to adopt, as its own, portions of the regulations of the Federal Housing Finance Board pertaining to the capital requirements for the Federal Home Loan Banks.

February 20, 2019 WebPage Regulatory News
News

PRA Publishes PS4/19 on Loss-Absorbency Mechanism Under Solvency II

PRA published a policy statement (PS4/19) that provides feedback on responses to the consultation paper (CP27/18) on adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down under Solvency II.

February 20, 2019 WebPage Regulatory News
News

SRB Publishes Framework for Performing Valuations in Resolution

The framework provides independent valuers and the general public with an indication of the expectations of SRB on the principles and methodologies for valuation reports, as set out in the legal framework.

February 19, 2019 WebPage Regulatory News
News

BIS Paper on Effect of Securities Lending on OTC Market Liquidity

BIS published a working paper that studies how securities lending affects over-the-counter market (OTC) liquidity.

February 19, 2019 WebPage Regulatory News
News

US Agencies Extend Consultation Period for the Proposed SA-CCR

US Agencies (FDIC, FED, and OCC) extended the comment period for a proposed rule to update their standards for how firms measure counterparty credit risk posed by derivative contracts.

February 18, 2019 WebPage Regulatory News
News

FED Extends Consultation Period for Stress Testing Rule

FED has published in the Federal Register a notice proposing amendments to the company run and supervisory stress test rules.

February 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for February 2019

EBA published answers to two questions under the Single Rulebook question and answer (Q&A) updates for this week.

February 15, 2019 WebPage Regulatory News
News

SEC Proposes Rule on Risk Mitigation Techniques for Uncleared SBS

SEC proposed a rule that would require the application of specific risk-mitigation techniques to portfolios of security-based swaps (SBS) that are not submitted for clearing.

February 15, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2623