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Fair value pricing – Regulators demand transparency and independence in valuations

Risk.net ‘Fair value’ pricing – Regulators demand transparency and independence in valuations 21 Apr 2021 The US Securities and Exchange Commission (SEC) has joined the growing list of global regulators cranking up the pressure on how financial services firms price investment securities – and how those values are determined. Rule 2-a5 under the Investment Company Act of 1940, officially adopted by the SEC in December 2020, is just the latest step in a decade-long effort to address valuation practices not only for registered investment companies, but across the spectrum of the financial services industry. By Karl Mackelburg, director, fixed income valuations, Refinitiv Karl Mackelburg, Refinitiv

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