The Technical Committee of the International Organization of Securities Commissions (IOSCO) published its final report on the principles for valuation of collective investment schemes (CIS) (which revise earlier IOSCO principles) on 3 May 2013. The report sets out 11 principles which aim to reflect a common approach and to be a practical guide for regulators and industry practitioners. They are addressed to the entity or entities responsible for the overall operation of the CIS, and in particular its compliance with the legal and regulatory framework in the relevant jurisdiction, but they do not provide directly applicable standards to firms. When being implemented, the principles need to be transposed taking into account the local regulatory framework.
IOSCO highlights the importance of independent oversight in the establishment and application of the policies and procedures designed to mitigate the conflicts of interests of CIS operators. The key objective underlying the principles is that all investors should be treated fairly.