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  • BDE-7.1 BDE-7.1 General Requirements

    • BDE-7.1.1

      The board of Directors must ensure that an independent, fair and regular valuation of all the CIU's assets, is conducted by appropriately qualified valuators.

      April 2012

    • BDE-7.1.2

      The valuation principles to be applied must be stated in the CIU's prospectus and must include details of the methods and frequency of the valuation of assets.

      April 2012

    • BDE-7.1.3

      The CBB expects the scope of the valuation policy:

      (a) To reflect 'good practice' industry standards;
      (b) Wherever possible, to be based on multiple and independent price sources;
      (c) Where unavoidable, valuations based on trader, broker or pricing models, input should be sufficiently tested and controlled, and declared, such that conflicts of interest are minimised;
      (d) Procedures should be developed to identify stale prices or illiquid assets;
      (e) The valuation of such assets should be performed by an expert in the asset class;
      (f) Valuations should normally be undertaken at least on a monthly basis.
      (g) [This subparagraph was deleted in October 2017].
      Amended: October 2017
      April 2012

    • BDE-7.1.4

      The fund administrator must notify the CBB, in writing, if:

      (i) The NAV per unit falls below 60% of the initial value per unit, at any valuation date.
      (ii) The total NAV falls below 60% of the total NAV reported in the last audited financials of the CIU; or
      (iii) The total NAV falls below 50% of the total NAV of the CIU relative to the previous valuation day.
      April 2012