On March 8, 2011, the International Organization of Securities Commissions (IOSCO) Technical Committee issued a draft Consultation Report entitled “Principles on Suspensions of Redemptions in Collective Investment Schemes.”  The report focuses on all open-ended collective investment schemes (CIS), including hedge funds, which offer a continuous redemption right, without regard to the type of investor to which the CIS is offered (i.e., institutional or retail).  The report proposes general principles to inform regulatory regimes in their oversight of CIS, and to guide fund managers in deciding if, when and how to suspend investor redemptions.  The report addresses basic management of liquidity risk, permissible reasons for suspension and the actions a CIS should take following a decision to suspend.  It emphasizes three basic principles, and offers guidance relating to alternative liquidity tools available in certain jurisdictions.  This article discusses the most important points of the consultation report, focusing in particular on the points most relevant to hedge fund managers.