With recent changes to Form PF set to take effect early in 2025, private fund advisors have fresh (and onerous) compliance obligations to navigate. The updated rules bring significant changes to reporting requirements, and now is the time to prepare. Advisors must assess their current processes, identify gaps and implement measures to meet the heightened regulatory standards.
The SEC and Financial Stability Oversight Council need better oversight of the private fund industry’s risks. With this sector’s increased growth and complexity, regulators want to safeguard the financial system by mandating more detailed, frequent and event-specific reporting. By bolstering the rules, regulators will be able to more closely monitor fund activities and intervene early if risks emerge.
These new reporting requirements will mean that private fund advisors must:
- Enhance overall risk monitoring
- Address growth and complexity
- Improve investor protection
- Respond to industry changes
- Implement event-based reporting for early intervention
Other changes include new requirements for exposure reporting, new questions about exposure, new rules for liquidity tracking, eliminating the requirement that advisors indicate whether there are risk metrics other than or in addition to VaR, and changes to stress testing thresholds.
What do private fund advisors need to do?
The most important thing to do? Start early.
Our latest Form PF Compliance Guide breaks down the key steps for complying with the new rules. But keep in mind, the new rules are both complex and onerous. To remove the burden of collecting data and reporting on Form PF or other regulations, contact us to find out how we can help.
