Assessing the Assessment of Value Reports

Assessing the Assessment of Value Reports

It’s been almost a year since the FCA Assessment of Value rules came into force, and many firms would say that due to the FCA’s limited guidance thus far, they are still no clearer as to what a good value statement look like. Well, those firms are now in luck, and may be finding out very soon what good looks like, and in turn, what bad looks like. If they are especially lucky, the FCA may even comment specifically on their statement.

FCA Assessment Of Value Part 5: The Us Approach – What Can Be Learned

FCA Assessment of Value Part 5: The US approach – what can be learned

While the FCA’s Assessment of Value (AoV) process is a new development in the UK market, a similar requirement on mutual funds has been in place in the United States for considerable time. The approach in the United States provides some useful comparisons to the new UK regime. The US fund governance model requires under Section 15c of the US Investment Companies Act 1940 for US fund boards to conduct an assessment on the fund managers using a number of factors commonly known as the Gartenberg Principles.