SEC Issues FAQ Document Related to New Guidance on the Fair Value of Fund Investments

The SEC’s Division of Investment Management has issued an FAQ document indicating that the SEC is removing ASR 118 because of the adoption of Rule 2a-5 of the Investment Company Act of 1940, which provides guidance on the fair value of fund investments. The FAQ document states that “the staff would not object if an independent public accountant chooses to stop looking to the auditing guidance contained in ASR 118 and instead determines the appropriate audit approach by following only the relevant PCAOB auditing standards any time after March 8, 2021, the effective date of the release withdrawing this prior auditing guidance.”