The SEC passed the controversial Form PF for private funds this week. Although most firms will not be required to report until the end of next year, certain advisers will need to begin reporting by June 2012. Highlights of new Advisers Act Rule 204(b)-1 are summarized below:
- Purpose - to collect specific data from private fund managers in order to provide that information to the Financial Stability Oversight Council (FSOC). The FSOC will use the information to help it determine which financial institutions may pose a "systemic risk" to our financial system.
- Firms Impacted - SEC registered advisers with $150 million or more in private fund AUM.
- Categories of Reporting - the SEC created two reporting groups: (1) large private fund advisers, and (2) smaller advisers.
- Large Advisers - at least $1.5 billion in hedge fund AUM, OR at least $1 billion in liquidity funds and registered money market funds, OR at least $2 billion in private equity fund AUM.
- Smaller Advisers - all other registered private fund managers that meet the $150 million AUM criteria.
- Reporting Timeline - the SEC created separate filing dates for the Large Advisers by sub-category:
- Large Hedge Fund Managers - filings are due within 60 days of the end of each fiscal quarter.
- Large Liquidity Fund Managers - filings are due within 15 days of the end of each fiscal quarter.
- Large Private Equity Fund Managers - filings are due within 120 days of the end of each fiscal year.
- Smaller Advisers - filings are due within 120 days of the end of each fiscal year.
- Initial Filing: all managers meeting the definition of a Large Adviser, as defined above, AND having at least $5 billion in AUM must file by the end of their first fiscal quarter or fiscal year, as applicable, ending on or after June 15, 2012. The earliest possible filers will be $5 billion AUM liquidity fund advisers beginning on June 30, 2012. All other private fund advisers, both large and small, are required to file their initial filing by the end of their first fiscal quarter or fiscal year, as applicable, ending on or after December 15, 2012.
View SEC press release and fact sheet on Form PF
FrontLine Compliance, LLC is a regulatory compliance consulting firm of former high-level regulatory insiders offering customized services to investment advisers, broker-dealers, hedge funds, private equity firms, investment companies, and insurance company affiliates. Staffed by former SEC and FINRA regulators, and chief compliance officers, FrontLine Compliance provides the kind of industry knowledge, experience and expertise on regulatory issues only available from well-seasoned insiders. For more information about the firm, please visit www.frontlinecompliance.com.
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