Valuation rule should move firms to formalize practices (IGNITES)

The requirement for a “valuation designee” as part of the SEC’s new valuation rule should help ensure a formal valuation process exists at firms. FrontLine’s Founder and President, Amy Lynch, comments that while most large firms already have a valuation committee, the new rule takes it a step further, pushing for certain processes and adherence to policies, while requiring fund boards to be involved. Ms. Lynch also recommends that the valuation designee consult with the firm’s Chief Compliance Officer, who should maintain an oversight role, helping to monitor that the requirements of the new rule are being followed. See IGNITES (subscription required), “New SEC Rule to Create Valuation Job”