WASHINGTON, D.C. - The SEC is planning to issue additional guidance to the fund industry sometime before April on securities valuations, said Douglas Scheidt, chief counsel for the SEC's division of investment management.

The guidance will amplify what was covered in a letter Scheidt sent to the Investment Company Institute, the industry trade association in Washington, D.C., in December 1999, he said. That letter outlined specific circumstances in which a fund must use fair value prices instead of market prices, how those prices should be determined and who is in charge of establishing and overseeing the prices, he said.

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