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| Article 8(4) of [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:079:0011:0019:EN:PDF Directive 2007/16/EC]:
| | #redirect[[financial derivative instruments - UCITS IV Provision]] |
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| {{box|For the purposes of the third indent of Article 19(1)(g) of Directive 85/611/EEC, the reference to reliable and verifiable valuation shall be understood as a reference to a valuation, by the UCITS, corresponding to the fair value as referred to in paragraph 3 of this Article, which does not rely only on market quotations by the counterparty and which fulfils the following criteria:
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| :(a) the basis for the valuation is either a reliable up-to-date market value of the instrument, or, if such a value is not available, a pricing model using an adequate recognised methodology;
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| :(b) verification of the valuation is carried out by one of the following:
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| ::(i) an appropriate third party which is independent from the counterparty of the OTC derivative, at an adequate frequency and in such a way that the UCITS is able to check it;
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| ::(ii) a unit within the UCITS which is independent from the department in charge of managing the assets and which is adequately equipped for such purpose.}}
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| ===See also===
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| *[[UCITS fair value]]
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| *[[UCITS liquid financial assets]]
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Latest revision as of 17:48, 24 August 2017