Investment Funds Update

SEC Finalizes Framework for Registered Fund Valuation Practices

December 16, 2020

On December 3, the U.S. Securities and Exchange Commission adopted new Rule 2a-5 (New Rule 2a-5) addressing registered fund valuation practices and, especially, the role of a fund’s board of directors in the fair valuation process. New Rule 2a-5 replaces decades-old guidance and interpretations and is intended to modernize the regulatory framework of registered fund valuation practices to reflect recent market developments and an increase in both the variety of asset classes held by funds and the volume of data used in fair valuation.

To read the full Sidley Update, please click here.

Attorney Advertising—Sidley Austin LLP is a global law firm. Our addresses and contact information can be found at www.sidley.com/en/locations/offices.

Sidley provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers. Sidley and Sidley Austin refer to Sidley Austin LLP and affiliated partnerships as explained at www.sidley.com/disclaimer.

© Sidley Austin LLP