Regulatory Alerts2021-01-06 | 2020-26971Added
Good Faith Determinations of Fair Value
The Securities and Exchange Commission adopted new rules under the Investment Company Act of 1940 establishing a standardized framework for registered investment companies and business development companies to determine the fair value of their investments in good faith. The rules require boards of directors to assess valuation risks, select and test methodologies, and oversee designated valuation designees, while also defining when market quotations are readily available and rescinding prior guidance. These regulations, effective March 8, 2021, include companion recordkeeping requirements to ensure consistent and transparent valuation practices across the fund industry.
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