SEC Adopts Amendments to Form PF
SEC Releases
Brief Introduction
As “hinted” by SEC Chairman, Gary Gensler, at the MFA Conference recently, the SEC announced on May 3rd that the Proposed Amendments to Form PF have been adopted.
The final Amendments will become effective six months after publication of the adopting release in the Federal Register for current and quarterly event reporting and one year after publication in the Federal Register for the remainder of the amendments.
Who This Applies To
- Large Hedge Fund Advisers with at least $1.5 Billion in Hedge Fund AUM
- Private Equity Fund Advisers with at least $150 Million in Private Equity Fund AUM
- Large Private Equity Fund Advisers with at least $2 Billion in Private Equity AUM
Final Amendments
- Large Hedge Fund Advisers must file current reports as soon as practicable when “trigger events” occur such as:
- Extraordinary losses
- Significant margin and default events
- Terminations or material restrictions of Prime Broker relationships
- Operations events and events associated with withdrawals and redemptions
- All Private Equity Fund Advisers will be required to file an event report for trigger events, within 60 days of the fiscal quarter end, such as:
- The removal of a General Partner
- Certain Fund termination events
- The occurrence of an Adviser-led secondary transaction
- Large Private Equity Fund Advisers will be required to report information on an annual basis pertaining to:
- General and Limited Partner claw backs
- Information on strategies and borrowings
Vigilant’s Conclusion
It is important for Firms to assess how these Amendments will affect their policies and procedures.
At a time when the SEC has no intention of slowing its pace, we can expect these Amendments to be evaluated during the increased number of onsite SEC exams in the future.
Firms should carefully assess their policies and procedures to ensure that trigger events are clearly defined, and follow-up actions are easily implementable.
Reach out to us today if you have any questions about how to remain compliant with these new Amendments, or how Vigilant’s Compliance Solutions can help.