SEC Issues 'Important Reminder' on Valuing Illiquid Private Assets

Odaily Planet Daily Report: As private assets become difficult to sell and investor redemption requests increase, major financial regulators on Wall Street are urging the financial industry to intensify efforts to value such assets. The U.S. Securities and Exchange Commission (SEC) released a statement on Monday regarding existing regulatory requirements, which did not propose new rules but was seen as a 'critical reminder.' This indicates that the agency will focus on how companies determine the value of their holdings and how they disclose these values and related risks. The Office of the Chief Accountant of the SEC and the Investment Management Division stated in a joint statement: 'In the issues discussed in this statement regarding valuation and disclosure, the core message is consistent: sound policies and procedures, along with adequate material disclosures, help investors understand the entity's fair value assessment process, the judgments involved, and the risks associated with private assets.'