Which regulator prescribes the maximum price at which a fund manager may issue new units?

• A. Financial Conduct Authority
• B. Association of Investment Companies
• C. Investment Association
• D. Bank of England

Answer: (A)

Pricing of new units in UK investment funds is governed by the Financial Conduct Authority. The FCA sets and enforces rules on how authorised funds deal with investors, including how issue prices are calculated and how any charges are disclosed. These rules aim to ensure fairness, transparency, and investor protection, so fund managers must price new issues in line with the fund’s net asset value and the disclosed charging structure.

The other bodies don’t have regulatory authority over fund pricing. The Bank of England focuses on monetary policy and financial stability, not fund unit issue prices. Trade associations like the Association of Investment Companies and the Investment Association provide industry guidance and represent members, but they do not prescribe binding price limits.