On August 18, the International Organisation of Securities Commissions (IOSCO) published a consultation report (Consultation) on a proposed set of good practices for the termination of open-ended and closed-ended investment funds. IOSCO notes in the Consultation that most national jurisdictions have legislation covering involuntary terminations (such as, when the investment fund becomes insolvent) but not voluntary terminations. IOSCO recognizes the impact terminating an investment fund can have on investors and is proposing the good practices to ensure investment funds’ termination procedures take into account investor protection. The recommended good practices cover termination procedure disclosures, decisions to terminate, decisions to merge, and communications to investors during the termination process, with an additional section on specific issues related to commodity, real estate, hedge funds and private equity funds offered for sale to professional investors.

The Consultation closes on October 17, 2016.

A copy of the Consultation is available here, and IOSCO’s accompanying press release, here.