world_organizations hard True/False

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.

  1. True
  2. 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.

Topic International Organization of Securities Commissions
Exam Relevance Banking, UPSC, SSC