Settlement time for an OEIC upon ownership is

Settlement time for an OEIC upon ownership is

• A. T+4
• B. T+2
• C. T+1
• D. T+3

Answer: (A)

Buying an OEIC involves not just agreeing a price but also the fund issuing new units to you and transferring cash to the fund. This is a process handled by the fund’s administrator, registrar and custodian, not a real-time stock transfer on an exchange. Because the transfer of cash and the issuance of units must go through multiple back-office steps and the fund’s NAV is calculated at set times, settlement takes a few days. In the UK, the standard timeframe for OEIC settlement is four business days after the trade date, so ownership is only updated after four days. This slower, multi-party process is why four days is the typical settlement period for OEICs.

Buying an OEIC involves not just agreeing a price but also the fund issuing new units to you and transferring cash to the fund. This is a process handled by the fund’s administrator, registrar and custodian, not a real-time stock transfer on an exchange. Because the transfer of cash and the issuance of units must go through multiple back-office steps and the fund’s NAV is calculated at set times, settlement takes a few days. In the UK, the standard timeframe for OEIC settlement is four business days after the trade date, so ownership is only updated after four days. This slower, multi-party process is why four days is the typical settlement period for OEICs.