SEC adopts amendments to enhance private fund reporting including those also registered with the CFTC. The amendments enhance how large hedge fund advisers report investment exposures, borrowing and counterparty exposure, & more
Form PF; Reporting Requirements for All Filers and Large Hedge Fund Advisers
Wut Mean?
Among other things, the amendments to Form PF will enhance how large hedge fund advisers report investment exposures, borrowing and counterparty exposure, market factor effects, currency exposure, turnover, country and industry exposure, central clearing counterparty reporting, risk metrics, investment performance by strategy, portfolio liquidity, and financing and investor liquidity to provide better insight into the operations and strategies of these funds and their advisers and improve data quality and comparability.
Further, the amendments will require additional basic information about advisers and the private funds they advise, including identifying information, assets under management, withdrawal and redemption rights, gross asset value and net asset value, inflows and outflows, base currency, borrowings and types of creditors, fair value hierarchy, beneficial ownership, and fund performance to provide greater insight into private fundsโ operations and strategies, to assist in identifying trends, including those that could create systemic risk, to improve data quality and comparability, and to reduce reporting errors.
The amendments will also require more detailed information about the investment strategies, counterparty exposures, and trading and clearing mechanisms employed by hedge funds, while also removing duplicative questions, to provide greater insight into hedge fundsโ operations and strategies, to assist in identifying trends, and to improve data quality and comparability.
Fact Sheet
TLDRS
- SEC adopts amendments to enhance private fund reporting including those also registered with the CFTC.
- The amendments to Form PF will enhance reporting by large hedge fund advisers on various aspects such as investment exposures, borrowing, counterparty exposure, risk metrics, and investment performance to improve insight into fund operations and strategies, and enhance data quality and comparability.
- Additional information will be required about advisers and the private funds they manage, including details on assets under management, withdrawal rights, gross and net asset values, inflows and outflows, and fund performance, aimed at providing a deeper understanding of private fundsโ operations, assisting in trend identification, and reducing reporting errors.
- The changes will also demand more detailed reporting on investment strategies, counterparty exposures, and trading and clearing mechanisms, while eliminating redundant questions to offer a clearer view of hedge fundsโ operations and strategies, help in trend analysis, and enhance data quality and comparability.
- Goes into affect 1 year after being published in the Federal Register.
