The Guernsey Financial Services Commission has issued a consultation paper on Guidance Notes for Pricing Controls in respect of Open Ended Collective Investment Schemes.  The paper has been prepared with the GIFA (Guernsey Investment Fund Association) Custodian and Depositary Committee.

The Commission, in conjunction with the GIFA Custodian and Depositary Committee, has been reviewing its 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 proposals take account of the IOSCO Principles for the Valuation of Collective Investment Schemes and the AIFMD Depositary Requirements Guidance Notes.

The Guidance Note is attached to the consultation document. The Guidance Note sets out the pricing controls and checks which Managers and Trustees should apply together with the standards of conduct expected when incorrect pricing issues relating to Collective Investment Schemes takes place and when the Commission considers compensation is required. The Commission would expect Managers and Trustees of Collective Investment Schemes to observe the guidance when complying with the Rules made under the Law.

The Guidance Note introduces a reasonable de minimis provision but at the same time indicates to Managers and Trustees the need for tight controls over pricing routines to reduce the likelihood of incorrect pricing arising.

The Commission would welcome responses, which should be submitted by no later than 5.00pm on 16 December 2015.  For respondents’ convenience, we have also presented on the web site a version of the Guidance Note blacklined to the current Incorrect Pricing Guidance Note.

Click here for the consultation paper. http://bit.ly/1Ocva2W and Forms/Consultation Paper on Guidance Notes for Pricing controls in respect of Open Ended Collective Investment Schemes (2).pdf

Click here for the guidance note. http://bit.ly/1Ocva2W and Forms/Pricing controls in respect of Open Ended Collective Investment Schemes – Final version.pdf