SEC Officials Address Fair Value Rules for Private Assets
SEC's chief accountant and investment management director issued guidance on fair value measurement and disclosure for private assets.
The Securities and Exchange Commission's chief accountant and the director of its Division of Investment Management issued a joint statement addressing fair value measurement and disclosure considerations specifically applicable to private assets, signaling regulatory attention to an area of growing concern as private markets expand.
Kurt Hohl, serving as the SEC's chief accountant, and Brian Daly, director of the Division of Investment Management, authored the statement together, reflecting a cross-divisional emphasis on the topic. The pairing of accounting oversight with investment management regulation underscores the complexity of valuing illiquid or thinly traded private assets, which by nature lack the transparent pricing mechanisms found in public markets.
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Fair value measurement has long been a pressure point for investment funds holding private equity, private credit, real estate, and other alternative assets. Regulators and auditors have raised persistent questions about consistency, methodology, and the adequacy of disclosures provided to investors, particularly as retail participation in private markets has grown through newer fund structures.
The statement from senior SEC officials carries practical weight for registered investment advisers, fund boards, and their auditors, who are responsible for establishing and reviewing valuation policies. Market participants will likely scrutinize the guidance for indications of the agency's enforcement priorities and expectations around transparency in reporting private asset values.
Continue reading at Speeches and Statements for the full text of the official guidance.
