New Form PF reporting seeks transparency from private funds (Hedge Fund Alert)

The soon to be finalized rule proposal on changes to Form PF reporting could put private fund managers in a difficult spot, comments FrontLine’s Founder and President Amy Lynch. If adopted as proposed, large private funds such as hedge funds would have to report within one business day via Form PF current significant events such as large losses or material changes. Ms. Lynch states that compliance and operational professionals at these firms would need to closely monitor the items in the rule day-to-day and regularly report them to management. She adds that while there would be other new data reporting requirements, this part of the rule puts a large onus on firm management to quickly determine what meets the rule’s criteria as a significant event when that may not be clearly understood within 24 hours. See Hedge Fund Alert (subscription required), “Regulatory Roundup: Hedge Fund Transparency Again Chief Issue as Gensler, SEC Mount Robust Rules Push”