SEC Proposes Improved Framework for Funds’ Fair Value Determination

The SEC has issued a proposed rule, Good Faith Determinations of Fair Value. The proposal would “establish requirements for determining the fair value in good faith of a fund’s investments and would permit boards to assign the determination to the fund’s investment adviser, subject to board oversight and certain other conditions.”

Comments on the proposal are due by July 21, 2020. For more information, see the press release and statement by Commissioner Hester M. Peirce on the SEC’s Web site.