There is little evidence of illegal late trading in the UK funds market, but there seems to be slight evidence of market timing abuse of UK authorised collective investment schemes, suggests the Financial Services Authority.
Information just released by the FSA indicates there is no evidence of widespread market timing abuse – where investors use the "stale" or out-of-date closing price of a fund to buy into or sell it a slightly better return at the next valuation point – and therefore no evidence to suggest long-term investor returns are in any way being harmed. That said, this is in stark contrast to the US market, which has recently seen large sums of money being invested in mutual funds but targeted to gain the best possible rate through use of delayed data. In rare cases where fund managers have fou...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes