(Article 19 of Directive 2011/61/EU)
1. An AIFM shall ensure that all assets held by the AIF are fairly and appropriately valued. The AIFM shall document by type of asset the way the appropriateness and fairness of the individual values is assessed. The AIFM shall at all times be able to demonstrate that the portfolios of AIFs it manages are properly valued.
2. The valuation policies and procedures shall set out a review process for the individual values of assets, where a material risk of an inappropriate valuation exists, such as in the following cases:
(a) the valuation is based on prices only available from a single counterparty or broker source;
(b) the valuation is based on illiquid exchange prices;
(c) the valuation is influenced by parties related to the AIFM;
(d) the valuation is influenced by other entities that may have a financial interest in the AIF's performance;
(e) the valuation is based on prices supplied by the counterparty who originated an instrument, in particular
…