The International Organization of Securities Commissions (IOSCO) has published a consultation report proposing a single, updated set of 13 recommendations for valuing collective investment schemes (CIS), intended to supersede IOSCO’s 2013 CIS Valuation Principles and 2007 Hedge Fund Principles. The proposals respond to market developments such as more open-ended funds holding less liquid and illiquid assets, including private assets, alongside increased retail investment and recent valuation difficulties during periods of market volatility. The recommendations are intended to apply to registered, authorised or public open-ended funds, with scope questions covering whether exchange-traded funds should be included or treated as good practice given their product features; money market funds are proposed to be out of scope. IOSCO’s updated framework spans valuation governance and independence (including oversight arrangements and stressed-market governance), conflicts of interest identification and mitigation with disclosure of residual conflicts, fair value methodology (including back testing and calibration), controls around pricing overrides, consistent application and at least annual review of valuation policies, enhanced documentation and due diligence expectations for third-party valuation service providers, forward pricing and valuation frequency aligned to dealing, defined processes to monitor and address stale valuations, investor disclosure and no-fee NAV availability, remediation and compensation for material pricing errors, and a new recommendation on valuation-related record keeping. Comments are requested by 2 February 2026, and IOSCO anticipates publishing a final report in the second or third quarter of 2026. Once finalised, securities regulators are expected to promote implementation by responsible entities, with application varying by jurisdiction.

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