November 28, 2017 07.33AM / IOSCO/MR/31/201
Board of the International Organization of Securities Commissions (IOSCO) on Thursday,
November 23, 2017 published 14 good practices on the voluntary
termination of investment funds that seek to protect investors’ interests
during the termination process.
final report titled IOSCO
Report on Good Practices for the Termination of Investment Funds,
IOSCO highlights the importance for investment funds of adopting
termination procedures that take into account investor protection issues.
Indeed, the decision to terminate an investment
fund can have a significant impact on investors, including their
ability to withdraw their funds in a timely manner.
good practices apply to voluntary terminations, as legislation at a national
level in most jurisdictions addresses involuntary terminations, such as those
caused by insolvency. Voluntary terminations typically occur because an
investment fund, although still solvent, is no longer economically viable or
can no longer serve its intended objectives.
report sets out additional good practices for the voluntary termination of
investment funds with illiquid or hard-to-value securities, such as commodity
funds, real estate funds or hedge funds.
good practices are categorised under the following five headings:
• Disclosure at
Time of Investment
• Decision to
• Decision to
• During the
• Specific Types
of Investment Funds