Funds free to decide pricing

Following an earlier consultation (CP 06/7), the Financial Services Authority has now decided to allow investment houses to decide, from October 6th, how collective investments funds should be priced, as long as the method is consistent and transparent to investors. Under the previous rules, unit trusts, for example, applied dual pricing (offer/bid) while investment companies with variable capital (open-ended investment companies) were required to have single pricing, the mid-market value between offer (buy) and bid (sell) prices. Changes had to be made to open flexibility otherwise all a...