how does the securities and exchange commission regulate fair value 
in 2020 the sec implemented rule 2a 5 under the investment company act of 1940 requiring funds to value their portfolio investments using the market value of their portfolio securities when market quotations are readily available if data is not readily available or if the investment is not a security the act requires the fund to use the investment s fair value the fair value is determined in good faith by the fund s board who are required to establish fair value methodologies and oversee pricing services 4