Stradley, MFDF and Partners Release Updated Fair Valuation White Paper

Today, the Mutual Fund Directors Forum and Stradley Ronon announce the release of the updated white paper “Practical Guidance for Fund Directors on Valuation Oversight.” The paper comes just over a year after the Securities and Exchange Commission’s (SEC) implementation for the amended Rule 2a-5 which provides requirements for determining fair value in good faith, addresses valuation practices, and outlines the role of a fund’s board of directors with respect to the fair value process. The updated white paper “examines the valuation of a fund’s portfolio securities, requirements surrounding fund valuation procedures, the board’s responsibility in overseeing valuation, and the responsibilities of the valuation designee under Rule 2a-5.” Additionally, the paper addresses how boards can perform their ongoing oversight including a discussion of reporting, organization, and communication with management. The paper presents questions for boards to consider as well as highlighting that fund directors have a variety of resources they can utilize as they review their valuation policies and procedures including: the fund’s chief compliance officer, auditor, fund counsel and/or independent directors’ legal counsel.

The paper includes viewpoints from an excellent working group that included experts from Deloitte and PwC, independent directors, chief compliance officers and others in the asset management space – creating a complete guide for those seeking advice in this space.

The Forum and Stradley plan to host a webinar on Tuesday, November 14 to discuss the important topics highlighted in the white paper, as well as key considerations for fund directors.

Click here to read the updated version of the Forum’s white paper “Practical Guidance for Fund Directors on Valuation Oversight.”
Click here to listen to a podcast detailing the release of the updated white paper.