In a widely anticipated move, the Securities and Exchange Commission voted today to propose amendments to the Form PF, which is used by SEC-registered investment advisers to private funds.
The Commodity Futures Trading Commission is also considering to propose, jointly with the SEC, these amendments that are designed to enhance the Financial Stability Oversight Council’s ability to assess systemic risk as well as bolstering the regulatory oversight of private fund advisors and investor protection efforts at the agency.
“I am pleased to support the proposal because, if adopted, it would improve the quality of the information we receive from all Form PF filers, with a particular focus on large hedge fund advisers,” said SEC Chair Gary Gensler in a statement. “That will help protect investors and maintain fair, orderly, and efficient markets.”
The SEC estimates that the private fund industry in the last decade has grown in gross asset value by 150%, and the Form PF has provided vital insight they say.
The proposed amendments will impact hedge fund reporting on investment exposures and pushes for more detailed information on investment strategies. Enhanced disclosure is being considered when it come to a number of areas including borrowing and counterparty exposure, currency exposure, investment performance by strategy, portfolio liquidity, financing liquidity, inflows, outflows, AUM, withdrawal and redemption rights.
The proposed amendments will be published on SEC.gov and a public comment period will be in effect for 60 days after the date of issuance and publication.
