Pricing problems
What are the legal concerns resulting from valuing instruments? What are the main legal pitfalls and challenges concerning illiquid instruments?
The problems around valuations are legion. There are concerns about the closer involvement of administrators in valuating investments as well as the inherent conflict of interest when the investment manager values generally illiquid assets. More subjectivity in pricing is needed as well as consistent methodologies. How this particular problem will be resolved is not clear as the legal profession also battles with the issues.
Henry Bregstein at Katten Muchin Rosenman in New York expresses concerns
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