IOSCO publishes final report on Standards for the Custody of CIS Assets

10 November 2015

The report seeks to clarify, modernize and further develop international guidance for the custody of CIS assets consistent with IOSCO’s core Objectives and Principles of Securities Regulation from June 2010.

 The Board of the International Organization of Securities Commissions (IOSCO) today published its final report on Standards for the Custody of Collective Investment Schemes’ Assets.  It sets out eight standards divided into two sections aimed at identifying the core issues that should be kept under review by the regulatory framework to ensure investors’ assets are effectively protected. The first section focuses on key aspects relating to the custody function. It reaffirms the importance for the regulatory framework to provide for suitable custodial arrangements to be in place, clear segregation requirements and appropriate independence. The second part of the report is dedicated to standards relating more specifically to the appointment and ongoing monitoring of custodians.

 The report identifies some of the key risks associated with the custody of CIS assets, such as operational risk, misuse of CIS assets, risk of fraud or theft, and information technology risk.

Full report

Full press release

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