05 Mar 2021
IOSCO launched its Thematic Review of the Recommendations for Liquidity Risk Management for Collective Investment Schemes issued by IOSCO in 2018.  The Thematic Review  aims to assess the extent to which the Recommendations have been implemented through member regulatory frameworks. It also aims to gather information about how how entities responsible for the overall operations of collective investment schemes (responsible entities), to whom the recommendations are directed, implemented them in practice. The Thematic Review report is expected for Autumn 2022.

Alongside the Thematic Review, IOSCO and the Financial Stability Board (FSB) are currently conducting a joint analysis of the availability, use and impact of liquidity risk management tools for open-ended funds (OEFs). The Joint Analysis is examining the experience of OEFs that faced redemption pressures during the COVID-19 induced market stresses of March and April 2020; the availability, use and impact on the broader market of liquidity risk management tools and how these were linked to the liquidity of underlying assets.

To inform both the Thematic Review and the Joint Analysis, IOSCO has issued a Market Participants' Survey. The Market Participants’ Survey is specifically designed to collect information from responsible entities on their:

  1. adoption and practical implementation of the Recommendations
  2. liquidity risk management practices and experiences during the March 2020 market turmoil.

It is voluntary for responsible entities to participate in the Markets Participants’ Survey. Individual responses will remain confidential and will be used only in anonymized and/or aggregated format. The submission deadline is 16 April 2021. Respondents are asked to send the completed questionnaires to ISOCO’s dedicated mailbox (LRM-MPSurvey@iosco.org).