SEC updates regulatory framework for good faith determinations of fair value
Purpose: To explain the new U.S. Securities and Exchange Commission (“SEC”) Rule 2a-5 (the “Fair Value Rule”) under the Investment Company Act of 1940 (the “1940 Act”), which addresses the valuation practices of registered investment companies and business development companies. Design/methodology/approach: Provides an overview of the Fair Value Rule, followed by a more detailed summary of the key provisions, including relevant guidance provided by the SEC in the release adopting the Fair Value Rule. Findings: The Fair Value Rule establishes a specific framework, a standard of baseline practices across funds, and a set of required functions that must be performed in order to determine in good faith the fair value of a fund’s investments for purposes of applying Section 2(a)(41) of the 1940 Act. Originality/value: Practical guidance from experienced investment management lawyers.
Year of publication: |
2021
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Authors: | Palmer, Christopher ; Delligatti, Paul ; Zutz, Andrew ; Lane, William |
Published in: |
Journal of Investment Compliance. - Emerald, ISSN 1528-5812, ZDB-ID 2048718-6. - Vol. 22.2021, 2 (18.06.), p. 201-213
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Publisher: |
Emerald |
Saved in:
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