10 February 2005

IOSCO: Consultation on examination of governance for collective investment schemes

IOSCO started a consultation on the report on the “Examination of Governance for Collective Investment Schemes (CIS)” prepared by its Standing Committee on Investment Management. The mandate directs the Committee to develop broad general principles for CIS governance.

The paper defines CIS governance, and identifies one primary general principle concerning independent review that applies in all the jurisdictions of SC5 members, regardless of the structural form of the CIS.

Additionally, it explains how the principle of independent review applies to, or is evidenced in, the different structural forms of CIS that exist in the jurisdictions of SC5 members. This work is based on the responses to the survey that SC5 sent to its members.

In addition, SC5 will later develop the principle of independence regarding the functions that should be entrusted to the entity responsible for reviewing the CIS Operator and CIS activities as well as other principles of CIS governance, namely those related with investors’ rights and transparency. SC5 will also investigate how those principles relate to the various structures of CIS in the jurisdictions of SC5 members.

Comments are to be sent by 11 May 2005 to IOSCO

Document

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