IOSCO recognises the importance for investment funds to have termination procedures in place from an investor protection perspective. The decision to terminate an investment fund can have a significant impact on investors in terms of cost or their ability to redeem their holdings in a timely manner during the termination process. Both retail and professional investors can be affected by the ultimate value of their investment in a fund at the time of termination. The report targets a broad range of investment funds including collective investment schemes (CIS) and other fund structures such as commodity, real estate and hedge funds.
IOSCO is consulting on 15 good practices for the termination of investment funds that are categorised under the following headings:
• Disclosure at Time of Investment
• Decision to Terminate
• Decision to Merge
• During the Termination Process
• Specific Types of Investment Funds
Public comments on this consultation paper should be submitted on or before 17 October 2016.
Full press release
Consultation report
© IOSCO
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article