Fund Valuations – A New Way to Keep Score

Robinson & Cole LLP
Contact

The Securities and Exchange Commission (SEC) recently voted to propose a new Rule 2a-5 under the Investment Company Act of 1940 (1940 Act), which would provide for a new framework for funds’ fair value determinations when a market value is not readily available (Proposed Rule). Under Section 2(a)(41)(B) of the 1940 Act, “fair value” is defined as valuations “determined in good faith by the board of directors.” The Proposed Rule would also define “readily available” market quotations for purposes of the 1940 Act. The Proposed Rule is meant to clarify how fund boards can satisfy their valuation obligations, and would apply to open- and closed-end funds as well as business development companies.

Please see full Publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robinson & Cole LLP | Attorney Advertising

Written by:

Robinson & Cole LLP
Contact
more
less

Robinson & Cole LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.