Valuation & Reporting — A Manager should ensure that assets under management are subject to independent valuation and customer reporting. The Manager may have:
(a) a third party service provider, such as a fund administrator or custodian, perform the valuation; or
(b)an in-house asset valuation function4 that is segregated from the investment management function. Such arrangements may be adopted within larger financial services groups where there are sufficient resources and internal controls to provide for effective segregation of both functions.
The annual audit performed by the independent auditor is intended to serve as a periodic check on the valuation of the assets. Taken on its own, the annual audit will not fulfil the requirement for independent valuation.
4 Unless otherwise required in the Rules, e.g. Fund Managers of Property Funds pursuant to the FUNDS Rulebook.