Thirteen IAs Fined for Failing to Report on Form PF
Commentary by Steven Lofchie
Thirteen investment advisers reached agreements with the SEC to settle charges of failing to meet reporting requirements in connection with private funds they advise.
According to the SEC, the advisers repeatedly failed to file or update Form PF, which is required for advisers with greater than $150 million in private fund assets under management. Through Form PF, advisers are required to provide information such as (i) the funds they advise, (ii) private fund assets under management, (iii) fund performance and (iv) use of leverage. These data are used by the SEC and Financial Stability Oversight Council to monitor and address risks.
Each of the advisers agreed to pay $75,000 to settle the charges. None of them admitted or denied the SEC's findings.
Commentary
Form PF is essentially useless. Having more firms complete the form is just putting private industry effort to waste.
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The SEC is requesting comment on the collection of information required by Form PF. The form is used by the FSOC to monitor systemic risk in the private fund industry and by the CFTC for its regulatory programs.