The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its final report on the principles for valuation of collective investment schemes (CIS) (FR05).

The principles aim to reflect a level of common approach and to be a practical guide for regulators and industry practitioners. They are addressed to the entity or entities responsible for the overall operation of the CIS, and in particular its compliance with the legal and regulatory framework in the relevant jurisdiction. However, they do not provide directly applicable standards to firms. When being implemented, the principles need to be transposed taking into account the local regulatory rules.

The principles revise earlier IOSCO principles on CIS valuation (originally developed in 1999) to take account of regulatory, industry and market developments. The 1999 guiding principles are attached as an appendix to the final report. The report also takes into account the IOSCO 2007 principles for the valuation of hedge fund portfolios. These principles are also attached as an appendix to the final report. In preparing the principles, IOSCO considered comments it received during its February 2012 consultation. The report includes a feedback statement on the public comments IOSCO received during the consultation period.

1. Funds/CIS valuation/IOSCO