SEC Extends OMB Review of Rule 2a-5 Fair-Value Information Collection

The Securities and Exchange Commission has submitted to the Office of Management and Budget a request to extend the information-collection approval for Rule 2a-5, Fair Value, under the Investment Company Act of 1940. The collection bears OMB Control No. 3235-0779, and the public comment period closes on September 28, 2026.

Rule 2a-5 requires a fund's board to oversee any valuation designee - either the fund's adviser or an internal officer - who performs fair-value determinations. The designee must provide quarterly written reports summarizing material fair-value matters, changes in valuation risk assessments, methodology deviations, and pricing-service oversight. An annual written assessment of the designee's process, including methodology testing and resource adequacy, is also required. Additionally, the designee must notify the board of any material matter affecting fair value within five business days of awareness.

Commission staff estimates that 10,047 respondents will each submit one response annually, totaling 10,047 responses. Each response is estimated to require 34 hours, for an aggregate burden of 341,598 hours per year. The monetized time cost is projected at $33,422 per response, or $335,790,834 in total, while the external cost burden is estimated at $3,632 per response, amounting to $36,490,704 annually.

Compliance with Rule 2a-5 is mandatory for any registered investment company or business development company that must determine fair value under the Investment Company Act. Records generated to satisfy the rule may be provided to the Commission during examinations or investigations and are protected by applicable confidentiality provisions.

Comments on the collection request may be submitted online at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202606-3235-004 or emailed to the address provided in the notice. The comment window is 30 days from the day after publication of the notice.