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Autif wants single-pricing on all Oeics and unit trusts

Autif is calling on the fund management industry to implement a single-pricing structure for all Oeics and unit trusts.

In a discussion paper released this week, the trade body lays out proposals which would see the abolition of the current dual-pricing system used by most fund managers.

Single-pricing is already mandatory for Oeics although managers often impose “dilution levies” on big purchases or sales. Autif says these levies confuse investors.

It wants a single-pricing structure to cover all unit trusts and Oeics, abolishing dilution levies and bid/offer spreads, to creat a consistent approach to pricing across the industry.

Autif Members have until April 27 to reply to the paper. Autif will then present a detailed pricing structure to the industry, which it hopes will be in place by the end of the year.

In a consultation paper issued last August, the FSA said it is committed to implementing mandatory single-pricing in the fund management industry at the earliest stage.

Acting director general Sheila Nicoll says the paper gives Autif members the chance to propose their own pricing structure to the FSA rather than have a new system imposed on them. She says: “We are trying to help the FSA and get this thing moving.”

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