—-strengthening global standards for fund valuation

June 2, 2026/IOSCO

The International Organization of Securities Commissions (IOSCO) published today its Final Report on Valuing Collective Investment Schemes (CIS), which sets out a comprehensive and updated set of recommendations to further enhance the reliability, consistency and transparency of valuation practices across global investment funds.

The report updates and consolidates IOSCO’s earlier Principles on valuation for collective investment schemes and hedge funds respectively. It takes into consideration feedback from market participants and developments in financial markets such as the rise in funds investing in less liquid, harder-to-value assets, including private assets, and the increasing participation of retail investors in such funds.

Accurate valuation of fund assets is critical to investor protection and to maintaining confidence in financial markets. It underpins the calculation of net asset value (NAV), ensuring that investors subscribe and redeem units at fair prices and are treated equitably.

The report sets out a series of recommendations aimed at strengthening valuation practices across jurisdictions and market participants. These focus on:

• Robust governance and oversight arrangement, including under stressed market conditions;
• Management of conflicts of interest;
• Sound and consistently applied valuation methodologies;
• Appropriate use and oversight of third-party valuation providers; and
• Transparency, disclosure to investors and record-keeping.

The recommendations are designed to be proportionate and adaptable across different types of funds and jurisdictions, while promoting a more harmonized and a more globally consistent framework for fund valuations.

“Reliable valuation practices are fundamental to fair and efficient markets. IOSCO’s updated recommendations will further ensure that investors are treated fairly and that fund valuations remain robust, including in periods of market stress.”

– Jean-Paul Servais, IOSCO Board Chair

“This work reflects IOSCO’s continued focus on strengthening the resilience of the asset management sector. The recommendations provide comprehensive practical guidance to address potential valuation challenges arising from the growing investment in less liquid assets and growing use of more complex investment strategies. They also complement IOSCO’s broader commitment to fortifying the resilience of open-ended funds to support financial stability.”

– Jessica Reyes, Chair of IOSCO’s Committee on Investment Management, and Head of Asset Management Policy Division at the French Autorité des Marchés Financiers (AMF)

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June 1, 2026/NGX

The Nigerian capital market on Monday achieved a historic milestone with the successful transition to a T+1 settlement cycle, becoming the first market in Africa to implement the shortened settlement framework designed to enhance efficiency, reduce risk, and improve global competitiveness.

Speaking at the T+1 Settlement Cycle Transition Ceremony in Lagos, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, described the development as a defining moment in the market’s evolution. “The era of T+1 has begun. In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles. This achievement signals that Nigeria is prepared to undertake the structural reforms required to compete for global capital,” Agama said.

He added that the reform aligns Nigeria’s capital market with global best practices, where shorter settlement cycles are increasingly being adopted to improve post-trade efficiency, reduce counterparty risk, and strengthen investor confidence. He reaffirmed the Commission’s commitment to continued modernisation of market systems and processes.

In his goodwill message, the Group Chairman of NGX Group, Alhaji Umaru Kwairanga, described the transition as a key step in the ongoing transformation of Nigeria’s capital market. He said the development underscores the shared commitment of stakeholders to strengthening market institutions, deepening investor confidence, and enhancing the market’s role in supporting economic growth and capital formation. “Milestones such as this reinforce confidence in our institutions and demonstrate our collective determination to build a more efficient and globally competitive capital market,” he stated.

Also speaking at the event, the Chairman of Central Securities Clearing System (CSCS) Plc Group Managing Director/Chief Executive Officer of NGX Group, Temi Popoola, said the transition represents a critical step in the broader evolution of Nigeria’s capital market. He noted that while the achievement marks a significant milestone, it is part of a longer journey toward building a deeper, more liquid, and more globally competitive market capable of supporting sustained economic growth and capital formation. “While today is a significant milestone, it is not the destination. It is part of a broader journey toward building a deeper, more liquid, efficient, and globally competitive capital market capable of supporting long-term economic growth and capital formation,” he said.

The Managing Director/Chief Executive Officer of CSCS Plc, Shehu Shantali said the milestone reflects the strength and operational readiness of Nigeria’s post-trade ecosystem. He noted that the new settlement cycle would enhance transaction speed, improve liquidity efficiency, and reduce settlement exposure across the market. “This transition is far more than a reduction in settlement timelines. It represents a strategic upgrade to market infrastructure and reinforces our commitment to building a more efficient, resilient, and globally competitive capital market,” he said.

The ceremony culminated in a symbolic closing gong ceremony marking the official commencement of the T+1 settlement cycle. The event was attended by CEOs of Exchanges market operators, regulators, stockbrokers, and leaders of trade associations across the capital market ecosystem.

The transition follows six months of coordinated industry-wide preparations involving regulators, exchanges, depositories, custodians, registrars, and other market participants, positioning Nigeria among global markets adopting shorter settlement cycles to improve post-trade efficiency and market resilience

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The International Organization of Securities Commissions (IOSCO) published today a Supervisory Toolkit for AI Use in Capital Markets.

The report provides regulators with a practical toolkit to support the supervision and oversight of Artificial Intelligence (AI) based systems used by regulated entities. The report is part of a phased approach to supporting securities markets authorities in considering appropriate regulatory and supervisory responses to AI in capital markets and the potential risks emerging from these technologies, including implications for investor protection, market integrity and financial stability.

Building on IOSCO’s previous work on AI¹, the toolkit covers the full lifecycle of AI systems and applies across all system types, from traditional Machine Learning (ML) models to Generative AI (GenAI) and emerging Agentic AI techniques. As the use of these technologies expands across investment processes, risk management and operational functions, providing important benefits for firms and clients, they may also introduce or amplify risks related to complexity, reduced transparency, third-party dependencies and governance challenges.

The report sets out three complementary layers to support supervisory oversight, through:

• Potential risk areas in merit of supervisory consideration.
• Tools for supervisory oversight of key areas: governance and risk management; third-party and outsourcing risk management; disclosure; and recordkeeping and reporting,
• Indicators for monitoring AI adoption and use, alongside engagement methods to gather relevant information.

The report is complemented by a standalone extract of the toolkit designed for direct use in supervisory activities, including on-site examinations and inspections.

Following publication, IOSCO will turn its attention to emerging industry practices across governance, disclosure, and recordkeeping and reporting of AI systems in capital markets. To inform this review of industry practices, the report includes a survey, which is open until 26 June. IOSCO will also continue to play a coordinating role in addressing AI developments in capital markets and to engage with other relevant international organizations, including the Financial Stability Board (FSB)

In light of recent developments in AI enabled cyber capabilities, IOSCO notes that they may materially accelerate threat evolution and increase the speed, scope, and scale of existing attack techniques. IOSCO is therefore examining how such AI driven cyber risks, and the need for more continuous assessment and remediation, should be reflected in its ongoing work on AI in financial markets. Financial market participants should remain vigilant to such risks and take timely, proactive steps to identify and remediate vulnerabilities.

“The increasing integration of artificial intelligence into capital markets requires supervisors to have practical and proportionate tools to assess emerging risks while supporting innovation and safeguarding market integrity and investor protection.”

– Jean-Paul Servais, IOSCO Board Chair

“The toolkit reflects IOSCO’s continued commitment to strengthening supervisory approaches in response to rapidly evolving technologies. It provides practical guidance to help authorities address the risk arising from the growing use of AI systems across financial markets.”

– Hanzo van Beusekom, Chair of IOSCO’S Fintech Task Force (FTF) and Member of the Executive Board of the Dutch Authority for the Financial Markets (AFM)

“The toolkit marks an important milestone, culminating two years of work by the Fintech Task Force. It is a significant step to strengthen supervisory readiness among capital market supervisors and represents IOSCO’s continuous effort to support robust oversight while facilitating responsible innovation.”

– Lim Tuang Lee, Former Chair of IOSCO’S Fintech Task Force (FTF) (March 2022- April 2026) and Assistant Managing Director, Capital Markets Group, Monetary Authority of Singapore

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