IOSCO proposes reforms to manage liquidity risks in funds amid daily redemption pressures.

IOSCO has proposed new liquidity risk reforms for funds, aiming to address risks related to daily redemption demands and illiquid assets. These reforms follow the Financial Stability Board's recommendations and focus on enhancing liquidity management practices, stress testing, and governance. The consultation period runs until February 11, 2025, with final reforms expected in the first half of 2025. The goal is to improve financial market stability and protect investors.

November 11, 2024
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