The SEC's Office of Compliance Inspections and Examinations ("OCIE") previously named valuation practices as one of its areas of focus in both investment advisor and investment company examinations and recently again highlighted valuation as one of its examination priorities for 2014. On January 9, OCIE published its examination priorities for…

SEC Increases Scrutiny of Valuation of Alternative Fund Investments A recent Wall Street Journal article highlights that the U.S. Securities and Exchange Commission and other regulators are increasing scrutiny of how alternative funds, including hedge funds, value their investments in illiquid holdings, noting that unscrupulous fund managers may falsely inflate…

Pursuant to both AIMA’s Guide to Sound Practices for Hedge Fund Valuation and AIFMD, the Manager of a Fund-of-Funds (“FoF”) is required to ensure that appropriate and consistent procedures are in place for the valuation of Fund assets on at least an annual basis. Best practice and regulations relating to…

Andrew Smith releases article discussing Investor Demands are Driving Valuation Best Practices and Transparency Investors have clearly signaled that they will invest only with fund managers that have implemented valuation best practices and are providing adequate transparency and disclosures. This trend will only grow stronger as regulators, auditors, fund administrators,…

With the Alternative Investment Fund Managers Directive (“AIFMD”) having entered into force on July 22, 2013, Alternative Investment Fund Managers (“Managers”) are now responsible for establishing and maintaining appropriate procedures concerning the valuation of assets in the Alternative Investment Fund (“Fund”). In addition, written valuation policies and procedures must be…