s.16Valuation
16
Section 16Part 3 — Operating Conditions for Private FundsAmended

Valuation

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Amended by LG49/S6
A private fund shall ha ve appropriate and consistent procedures for the purposes of proper valuations of its assets, which shall ensure that valuations are conducted in accordance with the requirements in this Act .
Subject to subsection ( 6 ), v aluation s of the assets of a private fund shall be conducted in accordance with subsection (1) .
V aluation s of the assets of a private fund shall be carried out at a frequency that is appropriate to the assets held by the private fund and, in any case, on at least an annual basis.
Notwithstanding subsection (1) , v aluations of the assets of a private funds hall be performed by —
an independent third party that is appropriately professionally qualified to conduct valuations in a non - high risk jurisdiction;
the manager or operator of the private fund, or a person who has a control relationship with the manager of the private fund, provided that —
the valuation function is independent from the portfolio management function; or
potential conflicts of interest are properly identified , managed, monitored and disclosed to the investors of the private fund; 5 or
an administrator not falling under paragraph (a) who is appointed by the private fund.
Where the valuation of the assets of a private fund is not perform ed by an independent third party in accordance with subsection (4) (a), the Authority may require the private fund to have its valuations verified by an auditor or independent third party .
Valuation of the assets of a private fund shall be carried out in accordance with any requirements in relation to valuations, including in respect of the degree and regularity of valuations appropriate for a private fund , set out in rules, statements of principle and guidance issued by the Authority under section 34 of the Monetary Authority Act (2020 Revision) .
The Authority may exempt a private fund from the requirements of this section either absolutely or subject to such conditions as the Authority may deem appropriate.

Cross References

  • Section 34 of Monetary Authority Actexternal

    Reference to Monetary Authority Act