Client Alert
SEC and CFTC Propose Private Fund Adviser Reporting Form
February 02, 2011
The Investment Management Practice
On January 25, 2011 and January 26, 2011, the U.S. Securities and Exchange Commission (the SEC) and the U.S. Commodity Futures Trading Commission (the CFTC, and collectively with the SEC, the Commissions) jointly proposed the adoption of Form PF (the Proposal) to implement certain provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). The information to be collected on Form PF is intended to assist the Financial Stability Oversight Council (the FSOC) in monitoring the potential systemic risks posed by private funds.
The proposed SEC rule would require SEC registered investment advisers that advise one or more private funds (Private Fund Advisers) to report certain risk, leverage and financial information regarding those private funds on the newly created Form PF. The proposed CFTC rule would require Private Fund Advisers that are also registered as commodity pool operators and/or commodity trading advisors with the CFTC to file Form PF in respect of any private funds advised by such dual registrants.
Under the Proposal, information reported on Form PF would remain confidential, although the information would be available to the Commissions generally, including for the purposes of rulemaking, examinations, investigations and investor protection efforts. Form PF would be filed electronically through a yet-to-be determined system.