Form PF Failures | $790k in Fines
SEC Releases
Introduction
Charges were announced on December 13th, 2024, against seven (7) Private Fund Advisers due to their failure to file Form PF.
Private Fund Advisers with at least $150 million AUM have been required to make these filings since 2012. The SEC uses these filings for data collection and investor protection.
Much of the information is aggregated and distributed to the public for market awareness, while some of it is utilized by the Financial Stability Oversight Council to evaluate systemic risks from Private Funds.
What Happened?
- Seven (7) Firms had penalties totaling $790,000.
- These Firms crossed the AUM threshold, and continued so, for years before filing a Form PF in 2024.
- The total number of years without filing, across all seven (7) Firms, amounted to 30 years.
- Remediation included making the required filings over the periods covered.
Vigilant’s Conclusion
It is important that Firms are aware of their regulatory filing requirements when changes happen to their business, especially AUM.
Failing to make required filings, which usually happen due to oversight issues, could result in costly fines.
These are examples of situations that a dedicated compliance partner could help avoid.
As your Firm finishes out 2024, reach out to us with any questions you have about the regulatory expectations of your business; let us help you plan 2025 so you can focus on your business goals.