Regulations
By Sydney TheCMO
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What Changes Are Coming. The proposal targets large hedge funds and private equity advisers specifically.
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Industry Has Been Pushing for This. Fund managers have been pretty vocal about form PF being a pain. Trade groups filed comment letters.
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What Happens Next. The agencies opened the proposal for public comment.
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The SEC and CFTC dropped a proposal that could make life easier for private fund managers drowning in paperwork.
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The agencies said the current setup is too much. Private fund managers have been complaining for years that form PF eats up time and money.
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The proposal targets large hedge funds and private equity advisers specifically. These managers would get to file more concise reports under the new rules.
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Form PF came out of the 2008 financial crisis. Regulators wanted a window into the private fund world to spot trouble before it spreads.
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Private fund managers said the requirements got too granular. Some data points didn't seem useful for tracking systemic risk. Others took forever to calculate and report.
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The proposed amendments would let advisers skip certain data fields that don't add much value for regulators.
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Fund managers have been pretty vocal about form PF being a pain. Trade groups filed comment letters. Compliance officers complained at conferences.
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And it's not just about the hassle. Smaller private equity shops and hedge funds said the reporting burden hit them harder than big players with armies of compliance staff.
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The agencies didn't put a number on how much time or money the changes would save. That'll probably come up during the comment period.
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Regulators also think cleaner data helps them do their job better. If advisers aren't rushing to fill out complicated forms, they're less likely to make errors or submit…
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More context: Warren Says SECs Atkins Maybe Lied to Congress on Enforcement
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The proposal comes as private markets keep growing. More money is flowing into hedge funds and private equity than ever before. That makes the SEC and CFTC's job harder.
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