An industry based on investing makes obvious the importance of valuation. The great recession exposed problems in valuing hard-to-value or illiquid assets, so the topic has been high on SEC examiners’ query list ever since.
File this topic under an adviser’s fiduciary duty standard. Serving the best interests of the investor translates into fair valuation of the client’s portfolios.
At the same time, the SEC doesn’t dictate how one you should go about valuating securities. It has said it expects a firm to have a process in place, memorialized via P&Ps, and to follow those policies. It would be appropriate to veer from those policies in certain cases, but the alternative methods for valuating also should be noted in policies.