Among the array of reforms in the 236 pages of the SEC’s January 2022 proposed amendments to Form PF (Proposal), arguably the most worrisome for hedge fund managers relates to the new Section 5 created therein that would require them to make filings within one business day of the occurrence of certain stress-related events. Comment letters submitted by industry professionals that were reviewed by the Hedge Fund Law Report expressed myriad concerns about the requirement, ranging from the haste of the reporting to the types of events triggering a report. This two-part series summarizes a subset of representative comment letters in anticipation of final Form PF reforms in the coming months. This second article notes certain 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. The first article
detailed general observations in the comment letters about the Proposal’s scope, intent and purpose, as well as the scope of the definition of hedge funds. See our two-part series: “Proposed Form PF Amendments Would Require Prompt Reporting of Certain Stress Events and Enhanced Reporting by Large Liquidity Fund Advisers
” (Mar. 3, 2022); and “Practical Impact of the Proposed Form PF Amendments on Fund Managers and Reasons for Industry Backlash
” (Mar. 10, 2022).