UCITS daily valuation: Difference between revisions
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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]: | |||
{{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: | |||
:(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; | |||
:(b) verification of the valuation is carried out by one of the following: | |||
::(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; | |||
::(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.}} | |||
===See also=== | ===See also=== | ||
*[[UCITS fair value]] | *[[UCITS fair value]] | ||
*[[UCITS liquid financial assets]] | *[[UCITS liquid financial assets]] | ||
Revision as of 11:13, 8 May 2013
Article 8(4) of Directive 2007/16/EC:
- 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:
- (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;
- (b) verification of the valuation is carried out by one of the following:
- (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;
- (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.