On 10 October the International Organization of Securities Commissions (IOSCO) published a consultation report on principles regarding the Custody of Collective Investment Schemes’ Assets. The aim of the report is to gather views of investment managers, custodians, institutional investors and other interested parties on the development of a set of principles for the custody of Collective Investment Schemes’ (“CIS”) Assets.
In its report, IOSCO have recognised the impact of events such as the Lehman Brothers and MF Global insolvencies, or the Madoff fraud, and have thus focused attention on CIS asset protection regimes. Through this consultation paper, IOSCO aims to explore the key risks associated with the custody function, through gathering the views of investors and other interested parties.
IOSCO have proposed 9 principles to tackle the above-mentioned risks. To view the principles and a summary of the report please follow this link.
The deadline for submitting comments on the consultation report is 10 December 2014. For information on how to submit a comment and the full consultation report please follow this link.
Should you require any further advice or information on the above, Cleveland & Co, your external in-house counsel, are here to help.