Form PF Current Reports: Reporting Trigger Events (Part Two of Two)

Form PF was originally adopted in 2011 to provide the SEC and the Financial Stability Oversight Committee with key information about private funds’ basic operations and strategies in an effort to establish a baseline picture of the industry for assessing systemic risk. Fund managers’ initial aggravation at having to gather and report certain information was softened by the fact that Form PF only had to be filed on a quarterly or annual basis. After amendments to Form PF took effect in December 2023, however, that regular filing paradigm shifted dramatically to include what amounts to a real-time reporting standard functionally. In addition to the routine Form PF filings, large hedge fund advisers are now required to file so-called “current” Form PF reports no later than 72 hours after designated events occur – and often while in the midst of dealing with those events. Moreover, “the new Form PF reporting requirements arrived during a period that has seen some of the most dramatic changes in the Investment Advisers Act of 1940 regime. It’s yet another straw on the camel’s back in terms of compliance obligations,” observed Akin partner Brian Daly. “Given the massive amount of transformation over the past 24 months – and what we expect to come in the next six months – there’s serious worry that this new filing process, which, in a vacuum, might be relatively straightforward, gets lost in the shuffle.” This article, the second in a two-part series, examines how fund managers are determining whether a Form PF reporting obligation has arisen and ensuring that a complete and accurate current report is filed in a timely manner, if required. The first article discussed the challenges hedge fund managers face in monitoring for current events and the approaches managers have taken. See our two-part series on the Amendments: “Enhanced Reporting for Large Hedge Fund Advisers” (Jun. 22, 2023); and “Compliance Challenges and Implications” (Jul. 6, 2023).

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