Swinging single pricing is not compulsory

The FSA will not make swinging single pricing compulsory on unit trusts but fund managers wishing to...

The FSA will not make swinging single pricing compulsory on unit trusts but fund managers wishing to use it instead of the common bid/offer dual pricing model may do so from 1 August. The use of swinging single pricing, in which a price may be moved within limits around a mid price to cover the costs of large purchases or repurchases of units, will be subject to disclosure in fund key features and prospectus documents. It will also be subject to a fairness test to ensure the use of a swinging single could not be used to generate profits for a fund. The FSA will revisit the issue of whether ...