Market timing not visible in the UK, says FSA

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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by the FSA indicates there is no evidence of widespread market timing abuse – where investors use the "stale" or out-of-date closing price of a fund to buy into or sell it a slightly better return at the next valuation point – and therefore no evidence to suggest long-term investor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...

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