SEC Rulemaking: Good Faith Determinations of Fair Value Under the Investment Company Act

The U.S. Securities and Exchange Commission on December 3, 2020 adopted a long-anticipated rule for the fair valuation of fund investments. Rule 2a-5 under the Investment Company Act of 1940 (final rule or rule): defines “readily available market quotations” as used throughout the Investment Company Act; establishes requirements for determining fair value in good faith; addresses both the board’s and the “valuation designee’s” role and responsibilities relating to fair valuation; and more...
By: Dechert LLP

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