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considering taking disciplinary action against firms that fail to follow fair-value guidelines for holdings with outdated prices.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.

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