Despite the SEC’s offering only a scant 30‑day period for the public to comment on its proposed amendments to Form PF (Proposal), concerned citizens and members of the private funds industry managed to submit 127 comment letters to advise the Commission’s next steps. With an eye toward educating the SEC on the nuances of the industry and tailoring the scope of the reforms, many letters were critical of different facets of the Proposal. To understand the impact of the Proposal and forecast potential changes when the SEC issues its final reforms, the Hedge Fund Law Report reviewed all the comment letters to analyze common complaints and concerns raised therein. This two-part series presents key takeaways from the comment letters submitted on the Proposal in anticipation of final Form PF reforms in the coming months. This first article summarizes general observations in the comment letters about the scope, intent and purpose of the Proposal, as well as the scope of the definition of hedge funds. The second article
will detail critiques of the one business day reporting requirement and the stress-related reporting events in the new Section 5 of Form PF that would trigger such reporting. See our two-part series on the Proposal: “Require Prompt Reporting of Certain Stress Events and Enhanced Reporting by Large Liquidity Fund Advisers
” (Mar. 3, 2022); and “Practical Impact on Fund Managers and Reasons for Industry Backlash
” (Mar. 10, 2022).