The SEC adopted a rule requiring hedge fund and private equity fund advisors to report systemic risk data. The new Form PF was jointly developed by the SEC and the CFTC in consultation with members of the Financial Stability Oversight Council, to satisfy Dodd Frank Act Sections 404 and 406.
In particular, for hedge, private equity, and liquidity funds, the information required on the Form PF is tiered so that detailed information will be required from larger private advisors as opposed to smaller ones. The minimum reporting requirement will be for those funds with $150 million dollars of assets under management, and smaller private fund advisors will not be required to file the form at all. Further, there will be additional information required of those advisors managing at least $1.5 billion dollars. According to the SEC, this requirement will only effect approximately 230 advisors in the United States. Many of these advisors will have 60 days from the end of the quarter to prepare this information while smaller advisors will have 120 days to file such information. For the largest advisors, filings must begin by June 15, 2012, while all others must file after December 15, 2012.
Of course, there is no certainty that this information will be effectively used to assess risk, or that there will be any benefit from these filings.