SEC Enhances Framework for Funds’ Fair Value Determinations
December 4, 2020
The SEC has issued a final rule, Good Faith Determinations of Fair Value. The final rule amends the Investment Company Act of 1940 to “address valuation practices and the role of the board of directors with respect to the fair value of the investments of a registered investment company or business development company (‘fund’). The rule will provide requirements for determining fair value in good faith for purposes of the Act.”
For more information, see the press release and speech by SEC Commissioner Hester M. Peirce on the SEC’s Web site.