Insight

SEC proposes modernized fund valuation framework

SEC proposal would simplify regulatory requirements, while maintaining fair value integrity

Sean McKee

Sean McKee

Partner, Audit, KPMG US

+1 609-947-2529

Matt Giordano

Matt Giordano

Partner, Audit, KPMG US

+1 617-988-6327

The Securities and Exchange Commission (SEC) has proposed modifying the valuation practices and the role of the board of directors in determining the fair value of investments held by a registered investment company or a business development company (hereafter, “fund”).

This proposal, if adopted, would modernize the fair value framework of funds and focuses on risk assessment, performance, policies, procedures, and record-keeping.

Additionally, if adopted the SEC would rescind previous guidance on the role of the board of directors in determining fair value and the accounting and auditing guidance related to fund investments, including Accounting Series Releases (ASRs) 113 and 118.

Download the article to learn more about:

  • What’s required to determine fair value?
  • Performance of fair value determinations
  • Readily available market quotations
  • Rescission of prior SEC releases