Backdating

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Backdating

In the context of mutual funds, a feature allowing fundholders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge, e.g. Giving retroactive value to purchases from the earlier date. In the context of corporate governance, the illegal practice of setting the date of options awarded as part of executive compensation to a period when the stock price was very low (rather than setting the date of the options on the date the award was made).

Backdating

The act of dating a document before the date it was actually signed. For example, if one signs a contract on February 1, one may backdate it to January 31. Backdating is usually illegal; for example, one may use backdating to evade taxes. However, it can be permissible under certain circumstances. For instance, one may backdate an insurance claim if there was an unavoidable delay between the date the insured event occurred and the day the claim was made.

backdating

The practice of allowing a mutual fund shareholder to use previous purchases of the fund's shares so as to qualify for reduced commission charges on subsequent purchases. Backdating is used when a fund offers declining proportional sales charges on larger purchases.
References in periodicals archive ?
For example, if one wishes to backdate a document for the purposes of recording an earlier oral agreement, it should nevertheless still be drafted in such a way so as to avoid giving the incorrect impression that it was actually signed on the date stated.
This is in line with our policy - and common UK water industry practice - to backdate surface water refunds to the start of the previous financial year in which a claim is received.
Mr South said he had written to local MPs asking for their support in urging the Home Secretary to honour the recommendation and backdate the pay rise from September 1.
The committee issued a blunt demand for Ms Smith to change her mind and backdate the rise
But Elland Road moneymen are risking the loss of the pounds 10m-rated star by refusing to backdate his pounds 8000-a-week rise.
PLANS to backdate millions of pounds of business taxes for riverside companies could soon be scrapped, following a crucial House of Lords decision.
The day of events is in response to home secretary Jacqui Smith's decision not to backdate a recommended 2.
There is growing anger among MPs at the decision not to backdate the pay award.