The International Organization of Securities Commissions (IOSCO) has published a final report on Standards for the custody of collective investment schemes assets. The report seeks to clarify, modernize and further develop international guidance for the custody of CIS assets consistent with IOSCO’s core Objectives and Principles of Securities Regulation.

The focus of the report is to review the role of entities responsible for the overall operation of the CIS in relation to the custody of CIS assets. This includes the responsible entity’s role in the appointment and ongoing engagement of entities which provide custodial services to CIS which, in addition to standard custodial duties of safekeeping and record keeping, may also include ancillary services such as fund administration and mandate monitoring.

The report sets out eight standards divided into two sections aimed at identifying the core issues that should be kept under review by the regulatory framework to ensure investors’ assets are effectively protected. The first section focuses on key aspects relating to the custody function. The second section covers the standards relating more specifically to the appointment and on-going monitoring of custodians.

View IOSCO publishes final report on standards for the custody of CIS assets, 10 November 2015