Chief compliance officers should make the valuation of distressed securities their No. 1 priority, Andrew J. Donohue, director of the division of investment management at the Securities and Exchange Commission advised at last week's national CCOutreach meeting, the agency's educational program for CCOs.

It is "imperative" that fund CCOs and advisory officials focus on making sure that distressed securities and derivative products be accurately reflected in funds' net asset values, Donohue said.

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