The International Organization of Securities Commissions (IOSCO) published on 17 November 2025 a consultation report on Valuing Collective Investment Schemes (CIS). The deadline for responses is 2 February 2026.
Robust valuation practice is a critical component of asset management, ensuring that assets are properly valued and investors are not disadvantaged.
The proposed recommendations in the report will update IOSCO’s 2007 Principles for the Valuation of Hedge Fund Portfolios and its 2013 Principles for the Valuation of Collective Investment Schemes (collectively, the “Principles”).
IOSCO found from its preparatory review of the Principles that, whilst they have been broadly implemented and remain effective, there was a strong case for updating them. Since their publication, the market has evolved, with an increase in CIS holding less liquid and illiquid assets including private assets, as well as increased retail investment in such schemes. Evolving best practices in CIS valuations and the recent experience of valuation challenges during times of market volatility also inform this consultation.
The proposed updated recommendations cover the following areas: oversight arrangement, governance under stressed market conditions, management of conflicts of interest, fair value, backtesting, use of third-party valuation service provider, stale valuations and record keeping.
AREF's Public Policy Committee are reviewing the consultation report and will decide whether AREF should respond. Members with any views on the updated recommendations with the consultation report should advise Jacqui Bungay, Head of Policy ([email protected]).
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