The International Organization of Securities Commissions has published its final report on the valuation of collective investment schemes, setting out recommendations aimed at strengthening the frameworks that fund managers use to price the assets held on behalf of investors. The report was released on 1 June 2026.
The report follows a consultation published in November 2025 and consolidates IOSCO's 2007 Principles for the Valuation of Hedge Fund Portfolios and its 2013 Principles for the Valuation of Collective Investment Schemes into a single updated set of recommendations. The recommendations cover governance and oversight, the management of conflicts of interest, valuation methodologies, the use of third-party valuation service providers, and transparency to investors and regulators.
SCOPE OF THE RECOMMENDATIONS
The recommendations apply to registered or authorised public open-ended funds, except money market funds, and include exchange-traded funds, with proportionate consideration of their specific features. They are addressed to fund managers or responsible entities, internal valuation functions and committees, and third-party valuation service providers.
IOSCO said the recommendations aim to enhance the consistency and transparency of valuation practices across global investment funds.
BUILDING ON THE CONSULTATION
The consultation closed for comments on 2 February 2026. IOSCO said the update responds to an increase in funds holding less liquid and illiquid assets, including private assets, to greater retail investment in such funds, and to lessons from periods of market stress such as the pandemic.
The full text is available on the IOSCO website.
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