Last month, the SEC adopted amendments to Form PF. These amendments enhance the reporting requirements for certain SEC registered investment advisors that advise private funds.
BACKGROUND
Form PF is a non-public reporting form used by the SEC to collect information from private fund advisers and to help observe and monitor the private fund industry to assess systemic risk. Investment advisers with at least $150 million in private fund assets under management are required to file Form PF. Additional information is required for larger private fund advisers, including Large Hedge Fund Advisers with at least $1.5 billion in hedge fund assets under management and Large Private Equity Fund Advisers with at least $2 billion in private equity assets under management.
AMENDMENTS
Amendments to Form PF will apply to Large Hedge Fund Advisers, Large Private Equity Fund Advisers, and private equity fund advisers with at least $150 million in private equity fund assets under management.
The Form PF amendments will require the following:
- Large hedge fund advisers must file a current report as soon as practicable, but no later than 72 hours from the occurrence of one or more trigger events. These trigger events will include certain extraordinary investment 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 upon the occurrence of one or more trigger events within 60 days of each fiscal quarter end. These trigger events include the removal of a general partner, certain fund termination events, and the occurrence of an adviser-led secondary transaction.
- Large private equity fund advisers will have to report on an annual basis information relating to any general partner or limited partner clawback that occurred during the past year. Certain additional information regarding fund strategies and the use of leverage will also have to be reported by these firms.
NEXT STEPS
The final amendments will become effective six months after the 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. A copy of the final rule can be found here.
For more information about the proposed changes discussed above, please contact NCA Compliance.Hayley Nelson is the President and Principal Consultant of NCA Compliance, Inc., a compliance consulting firm providing a wide range of customized compliance solutions for investment advisors. Ms. Nelson previously worked for the Securities and Exchange Commission and a large investment manager in New York.
