Regulatory Alerts2021-10-21
Pricing Controls in Respect of Open-Ended Collective Investment Schemes
The Guernsey Financial Services Commission requires Managers and Trustees of Open-Ended Collective Investment Schemes to maintain robust pricing systems, conduct regular reconciliations, and oversee accurate share valuation. The guidance introduces a 0.5% de minimis threshold, under which pricing errors generally require no compensation, while errors at or above this level typically trigger mandatory financial adjustments to or from investors and the scheme. Managers must record errors exceeding 0.1% and report material discrepancies to Trustees, who retain oversight discretion to approve or override compensation decisions based on demonstrated control compliance.
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