New Scrutiny of Mutual Fund Fair Value Practices

February 2013
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New Scrutiny of Mutual Fund Fair Value Practices

At a glance

The SEC recently charged eight former directors of a mutual fund with failing to oversee the valuation of portfolio securities.

The SEC recently charged eight former directors of a mutual fund with failing to oversee the valuation of portfolio securities. The directors have denied the allegations.

Although the case is currently in litigation, and the ultimate lessons may only be learned later, we think it’s important to describe some themes that will be of interest to fund directors and advisers, based on the SEC’s focus on valuation, as well as on boards’ own continuing scrutiny of valuation policies and practices.

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