Following-on from the Alternative Investment Fund Management Directive (“AIFMD”) and the issuance by the Commission of the Article 36 of AIFMD Depositary Requirements Guidance Notes, we undertook to review the Incorrect Pricing of Authorised Collective Investment Schemes – Guidance Notes on Correction and Compensation which have been in force in their current format for some years.
The review was undertaken in conjunction with the GIFA Custodian and Depositary Committee and was done taking into account the ‘IOSCO Principles for the Valuation of Collective Investment Schemes’ (in particular, Section 5 – ‘Pricing Errors’) and, where applicable, revisions have also been made in the context of the aforementioned Article 36 of AIFMD Depositary Requirements Guidance Notes.
The consultation on The Guidance Notes - Pricing Controls in Respect of Open Ended Collective Investment Schemes closed on 16 December 2015 and the Commission received four responses. We would like to thank those entities for their responses. All four entities have been contacted directly by the Commission and in three of the four cases we advised we considered their responses non material.
However; one entity suggested that the word delegate should be replaced with the term "outsource" so as to avoid any confusion. The Commission agrees and this amendment has been made and, for the avoidance of doubt we have always meant outsource in as much as you cannot devolve your responsibility under the relevant rules governing the schemes.
The Guidance Notes - Pricing Controls in Respect of Open Ended Collective Investment Schemes may be found here.