The International Organization of Securities Commissions (IOSCO) has issued a consultation report proposing a consolidated set of updated recommendations for valuing collective investment schemes, updating its 2007 hedge fund portfolio valuation principles and 2013 CIS valuation principles. The proposal is framed around ensuring valuation practices remain fit for purpose as CIS portfolios and investor participation evolve. IOSCO’s preparatory review found the existing principles have been broadly implemented and remain effective, but identified a strong case to update them given increased CIS holdings of less liquid and illiquid assets (including private assets), increased retail investment in such schemes, evolving best practices, and recent valuation challenges during periods of market volatility. The consultation sets out 13 updated recommendations covering areas including oversight arrangements, governance under stressed market conditions, conflicts of interest management, fair value, backtesting, use of third-party valuation service providers, stale valuations, and record keeping. Comments are requested by 2 February 2026, with IOSCO aiming to publish a final report in the second or third quarter of 2026.

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