8a. IA/PF – Valuing Hard to Value Securities (Intermediate - OPEN)
This session provides an overview of fundamental pricing considerations and will address hard to value securities and present best practices to ensure compliance with various rules, regulations, and related guidance. The panel of industry experts will provide an overview on how to approach hard to value securities, including due diligence pricing standards and fair valuation methodologies. The panel will also discuss enforcement actions and regulatory and accounting guidance to understand the complicated processes of fair valuation, matrix pricing, and pricing of complex securities.
This session is open to regulators but closed to members of the press.
Learning Objectives:
Review legal and regulatory requirements and best practices related to hard to value securities and lessons learned from recent enforcement actions.
Understand how to address certain valuation challenges based on a variety of risk and liquidity considerations related to credit risk, structured and complex securities, and thinly traded securities.
Learn best practices to comply with various valuation rules, reliance on third party fair valuation, as well as approaches to creating a pricing committee and performing stress and other testing methods.
Evaluate current best practices related to pricing and valuation of private securities and other illiquid securities, including NAV oversight, and pricing of illiquid securities in retail client accounts.
