SEC accuses fund directors of breaching their valuation duties
In a case involving fair valuation of structured notes, the SEC signaled that when investment company fund boards delegate the responsibility to fair value portfolio securities, they must provide “meaningful substantive guidance” and continuously review the appropriateness of valuation methodologies. On 10 December 2012, the Commission announced charges against eight former members of the board of directors of several closed-end and open-end registered investment companies. The Commission alleges that the directors failed to properly fair value a majority of the funds’ portfolio holdings from January 2007 until August 2007. The funds’ investment adviser settled charges in 2011 based on the same set of facts.
Click on the link above to download this Morrison & Foerster briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
Why register to The Lawyer
More relevant to you
News from The Lawyer
Briefings from Morrison & Foerster
California’s first carbon allowance auction on 14 November 2012 featured plenty of demand but a lower-than-expected closing price, based on results released on Monday by the California Air Resources Board.
The FTC announced a potentially groundbreaking settlement with the social networking app Path and released an important new staff report on Mobile Privacy Disclosures late last week.