On 10 November 2015, the International Organization of Securities Commissions (IOSCO) published its final report on standards for the custody of collective investment scheme (CIS) assets.

The report sets out eight standards (in 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. Section 1 of the report focuses on the custody function, highlighting the need for the regulatory framework to require that appropriate custodial arrangements be in place, clear segregation requirements and appropriate independence. Section 2 deals with standards concerning the appointment and ongoing monitoring of custodians.

The report usefully 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 IT risk.