FSA seeking bid-offer spread transparency

fund pricing

removal of 5% initial fee would allow asset performance to be seen more clearly

The FSA is looking to address the issue of initial charges in fund pricing in order to produce a more transparent bid-offer spread. According to the regulator, such a change would enable investors to see how the actual assets are performing more clearly. Specialist funds such as Merrill Lynch Gold and General, for example, tend to have a wider natural bid-offer spread on the underlying assets than a more liquid mainstream offering. This is despite FSA proposals published last week, allowing funds to choose between single and dual pricing from 2007. Within the consultation, it express...