Fair value - UCITS IV Provision

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The vexed question — germane to those considering the meaning of financial derivative instrument under UCITS IV of whatg constitutes fair value was first addressed by CESR (as it then was) in 2005:

The fair value of an OTC derivative corresponds to the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.