NAV error threshold: back-solving reconciliation tolerances

Who pays when a fund's NAV is wrong and the manager never saw the error? Under CSSF Circular 24/856 the investment fund manager corrects and compensates, even when the administrator calculated the price. The episode argues that managers should own one position and pricing record, backed by a written pricing policy, rather than inheriting whatever the administrator used. Listeners learn to back-solve reconciliation tolerances from the 0.5% NAV materiality threshold for fixed income UCITS funds: a tenth of it per break for same-day ownership, a quarter of it in open breaks as a NAV gate. Also covered: the aggregation clause, EU T+1, Invesco's identifier consolidation, circular matching, Bloomberg pricing drift and the SEC's Madison Capital Funding settlement. 0:00 Who pays for NAV errors under CSSF 24/856 0:59 Custodian, administrator and IBOR disagree on positions 3:23 Back-solving tolerances from the NAV threshold 5:56 NAV gate versus T+1 cut-offs 7:04 Identifiers, circular matching and price challenge 9:40 Reporting breaks to the board