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 ?
brief justification on why it is appropriate to backdate, with reference to the requirements in the regulations
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.
Firms that backdate stock options choose dates having the lowest stock prices as grant dates for their option awards retroactively when the whole distribution of stock price is available.
(87) Sarbanes-Oxley stopped the practice by limiting the opportunity to backdate and implementing internal controls on the executive compensation practice.
"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.
She said failing to backdate the award would leave each police officer about pounds 200 worse off, but insisted there was a greater principle at stake.
Because the SOX disclosure requirements make it essentially impossible to backdate stock options, some companies have turned to two other tactics to increase executive pay: spring-loading and bullet-dodging.
"You should be able to raise the issue directly with someone who is asking you to do something suspect." Topping that list, he says, would be orders to backdate or shred a document, though he acknowledges that those may be legitimate requests.
In addition to backdating documents, the indictment also states that Nuyen told his building managers to have tenants sign and backdate forms, and that Nuyen actually gave HUD forms without admitting that some tenant signatures had been written in by the building managers.
WATER chiefs are refusing to backdate compensation claims to millions of homeowners overcharged since privatisation.
Tamworth Borough Council has agreed to reduce the rent for all eligible current tenants and backdate it to April 6, 2009.
"I am concerned at the way police officers have been treated in contrast to police staff and I hope the Home Secretary will reverse her decision not to backdate their pay rise."