Proposing to Amend Form PF | SEC Release
On Wednesday, January 26th, the SEC announced that they voted on proposed amendments to enhance Private Fund Reporting. The goal of these proposed amendments is to assess systematic risk and strengthen the Commission’s regulatory oversight of Private Fund Advisers and its investor protection efforts.
As you can see, from Vigilant’s last release, the SEC is focusing on updating Rules and Regulations that have not been updated for years. This focus is on Form PF, which was adopted in 2011.
What topics were discussed in the Proposed Amendments?
- Current Reporting for Large Hedge Fund Advisers and Advisers to Private
Equity Funds- Large Hedge Fund Adviser Current Reporting on Qualifying Hedge
Funds- Extraordinary Investment Losses.
- Significant Margin and Default Events.
- Material Change in Relationship with Prime Broker.
- Changes in Unencumbered Cash.
- Operations Events.
- Withdrawals and Redemptions.
- Private Fund Adviser Current Reporting on Private Equity Funds
- Adviser-led secondary transactions.
- General partner or limited partner clawback.
- Removal of general partner, termination of the investment
period or termination of a fund.
- Filing Fees and Format for Reporting
- Large Hedge Fund Adviser Current Reporting on Qualifying Hedge
- Large Private Equity Adviser Reporting
- Reduction in Large Private Equity Adviser Reporting Threshold
- Large Private Equity Adviser Reporting
- Large Liquidity Fund Adviser Reporting
Vigilant’s Final Conclusion
The SEC is focusing on gaining information to analyze and assess risks to investors and the markets with a much more efficient turnaround time (One Business Day Target). Elevating the required information from Large Private Equity and Liquidity Funds will be important for risk assessments and the Commission’s regulatory programs.
As you can see, the SEC is focusing on enhancing Rules and Regulations that have not been updated for years, so be on the lookout for more SEC updates in the future.
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