IOSCO's principles for collective investment schemes (CIS) emphasize investor protection through requirements for independent custody of assets, transparent disclosure of fees and risks, and robust governance to prevent conflicts of interest.
- True
- False
Answer: True
These principles address risks in mutual funds, ETFs, and other pooled investments. Independent custody prevents asset misappropriation; clear disclosure enables informed decisions; strong governance ensures managers act in investors' best interests. This framework supports market integrity and confidence in collective investment vehicles.