Achieve SEC Rule 2a-5 Compliance with the Power of Pricing Automation

Asset managers have less than five months to ensure alignment and compliance with SEC Rule 2a-5, yet many have indicated a lack of preparedness for the imminent changes and new requirements.

SEC Rule 2a-5, which went into effect on March 8th of last year, establishes new requirements and responsibilities asset managers must meet in order to determine the fair value of assets in good faith. According to Indus Valley Partners subject matter experts during a recent webinar, the biggest change the SEC has introduced in this rule is the creation of a “Valuation Designee” that’s responsible for overseeing and calibrating fair value determination as well as regularly reporting any material changes to the board.

As the industry nears the SEC’s September deadline, experts unveiled the below 15-point checklist that firms can use to determine their compliance status and overall readiness.

SEC Rule 2a-5 Compliance Checklist

Surprisingly, asset managers have discovered an inability to check every box due to their continued dependence on manual processes and use of error-prone spreadsheets – leading many to seek an automated pricing and valuation solution that can help them achieve full compliance with the rule.

IVP’s Pricing and Valuation Solution efficiently retrieves data from vendors and brokers, applies waterfall pricing rules, and ensures prices meet threshold checks – helping funds apply fair valuation determination policies consistently and deliver prices that the Valuation Designee, the board and regulators can review with confidence. On top of this, IVP offers consulting services for SEC Rule 2a-5 that accelerate compliance efforts for asset managers by assisting with suggestions for the Valuation Designee based on guidelines, analyzing readily available quotes and pricing services, and more.

For access to the on-demand recording of the webinar, please visit https://www.ivp.in/resources/webinars/pricing-and-valuation-automation-solution-sec-rule-2a-5-compliance/ or contact sales@ivp.in to learn more about how IVP can help.

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