Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Money Management Executive can deliver.
  • Exclusive Online Only Content
  • Free Daily Email News Alerts
  • Asset Management Blogs

SEC Might Take Action On Fair-Value Failures

The SEC is reportedly considering taking disciplinary action against firms that fail to follow fair-value guidelines for holdings with outdated prices. Even with the fair-value pricing investigation in its infancy and the number of firms being probed not being released, officials said that fair valuation is a key issue for the SEC since market timers often take advantage of the mispricing that occurs when fair-valuation is not used. In fact, the SEC may wage a full-fledged attack against fair-value transgressions.

Copyright 2004 Thomson Media Inc. All Rights Reserved.