Capital markets, as one of the principal pillars of the economy, require effective regulatory mechanisms to foster public confidence. In this context, collective investment schemes, as a means of professional asset management, play a significant role in channeling retail liquidity toward productive economic activities. The primary objective of this study is to assess the extent to which the laws and regulations governing Iran’s capital market—particularly the Securities Market Act of 2005 and the Act on the Development of New Financial Instruments and Institutions of 2009—are aligned with the principles and standards established by the International Organization of Securities Commissions (IOSCO). The principal benchmarks for comparison include, in addition to the Objectives and Principles of Securities Regulation, IOSCO’s Principles for the Regulation of Collective Investment Schemes and relevant supplementary reports. This study adopts a descriptive-analytical methodology with a comparative approach. The findings indicate that, although the Iranian legislator has sought to incorporate modern financial regulatory frameworks into the legal structure governing investment funds, significant challenges remain with respect to several fundamental IOSCO principles. These challenges include, inter alia, the lack of full independence of the regulatory authority from the executive branch, the absence of sufficiently clear and comprehensive segregation of assets by the custodian, and shortcomings in the effective management of conflicts of interest within large financial groups. Addressing these deficiencies requires legislative and regulatory reforms aimed at strengthening investor protection, enhancing regulatory independence, and ensuring greater transparency and integrity in the capital market.