IOSCO is consulting on recommendations and good practices in liquidity risk management for funds, and has accompanied the consultation with examples of good and bad practices.
The consultation builds on a report in 2013 and addresses structural vulnerabilities the FSB has identified. The papers covers:
- investor disclosure
- alignment between asset portfolio and redemption terms
- availability and effectiveness of liquidity risk management tools and
- fund level stress testing
IOSCO asks for comments on both papers by 18 September.