IOSCO publishes revised liquidity risk management recommendations and related guidance for collective investment schemes
The CSSF would like to inform industry participants that the International Organization of Securities Commissions (IOSCO) published the following final reports on 26 May 2025:
- a) IOSCO issued the final revised Recommendations for Liquidity Risk Management for Collective Investment Schemes as an update to their earlier 2018 recommendations.
The revised Recommendations can be found on IOSCO’s website at: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD798.pdf.
- b) At the same time, IOSCO issued the final Guidance for Open-ended Funds (OEF) for Effective Implementation of the Recommendations for Liquidity Risk Management.
The final Guidance can be found on IOSCO’s website at: https://www.iosco.org/library/pubdocs/pdf/IOSCOPD799.pdf.
A related IOSCO press release is available at: https://www.iosco.org/news/pdf/IOSCONEWS771.pdf.
IOSCO revised their 2018 recommendations after having worked together with the Financial Stability Board (FSB) on the 2023 Revised Policy Recommendations to Address Structural Vulnerabilities from Liquidity Mismatch in Open-ended Funds, which themselves followed lessons learnt since their publication, including during the March 2020 market turmoil, that have produced new insights into liquidity management challenges in segments of the OEF sector. Hence, the revised Recommendations are aligned with the latest FSB Recommendations and incorporate other changes to reflect market and policy developments since the publication of the IOSCO 2018 Liquidity Recommendations.
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