Unit Trusts And Investment Funds

Sovereign Ordinance No. 10.281 of 20th December 2023 amending Sovereign Ordinance No. 1.285 of 10th September 2007 implementing Law No. 1.339 of 7th September 2007 relating to unit trusts and investment funds

Summary

The changes introduced by Sovereign Ordinance relate to the accounting and financial rules of funds.

First for all, the Sovereign Ordinance introduced a mechanism for the adjustment of the net asset value, known as «swing pricing».

Swing pricing is a mechanism by which the cost of adjusting subscription and redemption flows to be included in the net asset value of the fund.

Secondly, the Sovereign Ordinance has redefined concepts of net income and result.