Regulatory Alerts2021-11-10
Added · Updated
Calculation of Fair Value of a Security
The Namibia Financial Institutions Supervisory Authority issued Standard CIS.S.4.13 to mandate managers and operators of collective investment schemes to determine the fair value of securities held within those schemes. The standard prescribes specific valuation methodologies tailored to security types, requiring the use of current market prices for listed securities, adjusted rates or acquisition costs for unlisted instruments, and recognized pricing models for derivatives and forward contracts. Managers must ensure valuation consistency over time, incorporate relevant risk factors such as liquidity constraints and sale restrictions, and provide full disclosures whenever material valuation changes occur.
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