The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have jointly published “Unit pricing – guide to good practice” for the life insurance, superannuation and funds management industries.

The guide was developed after a joint review by APRA and ASIC of unit pricing practice, aided by extensive industry consultation.

Both regulators noted serious problems could arise for investors where errors in the calculation of unit prices occur.

ASIC Commissioner Professor Berna Collier says unit pricing issues can be complex, and there have been cases where compensation has been or is being paid. “We acknowledge that there are many thousands of unit prices calculated by industry each day and the vast majority will be correct,” Professor Collier said.

Investment and Financial Services Association (IFSA) CEO Richard Gilbert says the release of the guide concludes more than a year of industry consultation and will drive a move to commonality of pricing practices across all industry segments.

“Overall, the guide has dealt with the matters of concern forwarded by IFSA and our members and the breadth of the guide is sufficiently broad to clearly identify the responsibilities of fund managers and trustees with regard to this issue,” he said.