The U.S. Securities and Exchange Commission (SEC) has proposed amendments to Form PF.

2024-09-27 01:21:08

On August 10, 2022, the U.S. Securities and Exchange Commission ("SEC") and the Commodity Futures Trading Commission ("CFTC") proposed amendments to Form PF ("Proposed Amendments") to revise the reporting requirements for SEC-registered private fund advisers and CFTC-registered commodity pool operators or commodity trading advisors under this form. The Proposed Amendments notably include the following disclosure requirements:

Redemptions. The Proposed Amendments require advisers to disclose information on the redemption rights of reported funds under the form. Advisers must report redemption information regardless of whether there are notice requirements, thresholds, lock-up periods, or other restrictions.

Inflows and Outflows. The Proposed Amendments require advisers to disclose information on fund activities, including contributions to the fund, redemptions, and any other forms of distributions to investors by the fund.

Trading Vehicles. The Proposed Amendments will require advisers to disclose any trading vehicles through which the fund holds or conducts investment activities and provide identifying information, including the legal name of the trading vehicle; legal identification number (if any), and any other identifying information about the trading vehicle.

Master-Feeder Structures. Under the Proposed Amendments, advisers will generally need to separately disclose information on each component fund in master-feeder and parallel fund structures, rather than reporting on an aggregated basis.

Hedge Fund Investment Strategies. For hedge fund advisers, the Proposed Amendments will require advisers to indicate which investment strategies best describe the reported fund's strategies as of the last day of the reporting period, rather than allowing advisers the flexibility to provide this information as of the data reporting date or throughout the reporting period, as currently permitted under Form PF.

Beneficial Ownership of Reported Funds. The Proposed Amendments require advisers to (1) indicate whether beneficial owners that are broker-dealers, insurance companies, non-profit organizations, pension plans, banks, or savings associations are U.S. or non-U.S. persons, and (2) for beneficial owners that are private funds, indicate whether such beneficial owners are internal private funds (i.e., managed by the adviser or its related persons) or external private funds.

Digital Assets. The Proposed Amendments will add digital assets as a new sub-asset class and define the term "digital asset" as "an asset that is issued and/or transferred using distributed ledger or blockchain technology, including, but not limited to, so-called 'virtual currencies,' 'coins,' and 'tokens.'"