SEC Issues guidelines for Form PF Reporting
The SEC published a small entity compliance guide for investment advisers relating to the new Form PF. These new reporting requirements affect SEC registered investment advisers with at least $150 million dollars in assets under management. Some of these new guidelines will also apply to CFTC commodity pool operators and commodity trading advisers.
The SEC registered advisers will be divided into 2 groups, small advisors and large advisers. The definitional requirements for large advisers are specific and may require certain calculations, however. Clearly, large advisers have assets under control of anywhere between a billion dollars and more. For the purposes of the Form PF, all other advisers would be considered small private advisers.
Generally, an investment adviser is a small business pursuant to the Investment Advisers Act and the Regulatory Flexibility Act if it has assets under management of less than $25 million dollars. As such, these advisers will, generally, have no reporting requirements on a Form PF. However, for those advisers, who are not defined as a small business, there may be certain reporting requirements. For example, advisers with over $150 million dollars in private fund assets under management, but are not large advisors must file a Form PF once a year within 120 days at the end of the fiscal year. Large private advisers must file a Form PF within 60 days. Moreover, the requirements for advisers with over $150 million dollars, but who are not large advisers, are less than those of large private fund advisers. Essentially, the more money you have under management, the more information you must provide.
In short, advisers should consult with securities counsel to ensure accurate reporting in the future.