IOSCO consults on fund liquidity risk management

IOSCO is consulting on recommendations and good practices in liquidity risk management for funds, and has accompanied the consultation with examples of good and bad practices.

The consultation builds on a report in 2013 and addresses structural vulnerabilities the FSB has identified. The papers covers:

  • investor disclosure
  • alignment between asset portfolio and redemption terms
  • availability and effectiveness of liquidity risk management tools and
  • fund level stress testing

IOSCO asks for comments on both papers by 18 September.