The Securities and Exchange Commission has issued further guidance on when funds should price securities using fair value pricing methodologies instead of market prices in a letter April 30 to Craig S. Tyle, general counsel of the Investment Company Institute of Washington, D.C.

The letter is a follow-up to a December 1999 letter addressing fund pricing policies written by Douglas Scheidt, associate director and chief counsel of the SEC. This most recent letter is intended to clarify questions raised by Scheidt’s first letter, it said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.