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IOSCO board issues final recommendations.

Madrid, Spain: The International Organization of Securities Commissions (IOSCO) board issued final recommendations that seek to improve liquidity risk management practices of open-ended collective investment schemes (CIS) as part of its mission to protect investors, ensure fair and efficient financial markets and reduce systemic risk.

It simultaneously published a final report that provides practical information, examples and good practices regarding open-ended fund liquidity risk management, to supplement its recommendations. The final report, Recommendations for Liquidity Risk Management for Collective Investment Schemes, sets out IOSCO's recommendations to entities responsible for managing the liquidity of CIS (responsible entities) to ensure that liquidity is managed to safeguard and protect the interests of investors, including in stressed market conditions.

In addition to its recommendations to responsible entities, the final report includes IOSCO's additional guidance to securities regulators to promote good liquidity management practices for CIS. The final report replaces the liquidity risk management framework contained in IOSCO's 2013 report Principles of Liquidity Risk Management for Collective Investment Schemes. It also constitutes the final step in IOSCO's response to address potential structural vulnerabilities in the asset management sector identified by the Financial Stability Board (FSB) that could impact financial stability, and, has been prepared in light of the FSB's Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities" recommendations published in January 2017.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Mar 20, 2018
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