The SEC’s amendments to Form PF

Last week, the Securities and Exchange Commission (SEC) moved to increase transparency and oversight within the private fund industry by adopting amendments to Form PF. This confidential reporting form is a critical tool for SEC-registered investment advisers to private funds, including those dual-registered with the Commodity Futures Trading Commission (CFTC) as commodity pool operators or commodity trading advisers. The revisions aim to bolster the Financial Stability Oversight Council’s (FSOC) efforts in monitoring systemic risks while enhancing the SEC’s regulatory purview over private fund advisers.

The objective behind the amendments

The inception of Form PF marked a new era in regulatory oversight, providing a window into the private fund sector. However, the continuous evolution of the industry highlighted several gaps in the information obtained through this form. SEC Chair Gary Gensler highlighted the significance of the amendments, stating, “Since Form PF first was adopted, the SEC, CFTC, and FSOC have identified gaps in the information we receive from private fund advisers. These amendments to Form PF will enhance the Commission’s and FSOC’s understanding of the private fund industry as well as the potential systemic risk posed by the industry and its individual participants. In addition, the adoption also furthers investor protection efforts.”

Key features of the amendments

Enhancements include detailed reporting on investment exposures, borrowings, counterparty exposures, and various risk metrics. Additionally, the amendments mandate the disclosure of fundamental information about the advisers and the private funds they manage, such as assets under management, withdrawal rights, and fund performance.

Implementation timeline

A notable aspect of these amendments is the concurrent adoption by the CFTC and the establishment of a memorandum of understanding between the SEC and CFTC for sharing Form PF data. This collaboration underscores a unified approach towards ensuring a more transparent and secure financial system. The amendments are set to become effective one year after their publication in the Federal Register, offering private fund advisers a window to align their reporting processes with the new requirements.


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