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Managing Unit Pricing Errors
Unit Pricing Risk Management and Corporate Governance. How does your organisation stack up?
The Unit Pricing process is the critical link between the value of the unit holder’s account and the value of the underlying investments. Unit prices are often calculated in a high-speed, high-pressure environment. An organisation may calculate and publish many hundreds of unit prices every day.
Risk management of unit pricing has improved considerably in recent years however it would be naïve to think that it is possible to guarantee no issues or errors will arise. Errors in unit pricing can be costly in both the compensation to be paid to unit holders and the associated costs of rectification. There will also be consequences of reputational damage or publicity.
This presentation looks at the complexity inherent in the unit pricing process and recommends a governance framework for managing that complexity.