The U.S. Securities and Exchange Commission (“SEC”) appears to have a renewed interest in ensuring that private fund advisers have filed their Form PF accurately and on time. Within the last week, ACA has become aware that the SEC’s Division of Enforcement has reached out to a number of private fund advisers regarding their Form PF filings, or lack thereof. Specifically, it appears that the SEC is identifying firms with regulatory assets under management of $150 million or more, but have not previously filed a Form PF.
The SEC’s inquiries to these firms are similar and request the following types of information:
- Whether and when the adviser has filed a Form PF report;
- If no Form PF reports have been filed, an explanation by the adviser as to why it was not required to file, or the reason for missing the filing deadline; and
- How the adviser plans to facilitate future compliance with their Form PF filing requirements, as applicable.
It is now clear that the SEC is utilizing Form PF data for more than the Division of Investment Management’s quarterly Private Funds Statistics Report. Over the past few years, the SEC has published an annual supplement to its quarterly reports with specific highlights of Form PF’s use. In the SEC’s most recent Annual Staff Report Relating to the Use of Form PF Data, SEC staff state that they are using Form PF to “target and expedite exams and enforcement,” which ACA notes is a shift in position from previous years. Specifically, in part, the SEC has dedicated resources to the use of technology to combine certain data points from Form PF and Form ADV to identify, as noted in the report, “potential reporting errors, compliance issues, or other issues of interest (i.e., ‘flags’) for the examination team to consider,” among other things.
Based on this report and ACA’s observed increase in notifications to firms regarding failures to file Form PF, ACA believes that the SEC may be actively reaching out to firms in order to gather data related to the usage of Form PF.
Private fund advisers of all sizes should ensure their firms have accurately filed their Form PF within the mandated deadlines. Filing Form PF is often a time-intensive process that requires an adviser to gather data from multiple sources across its firm and service providers, such as fund administrators, to which the signatory may not have direct access.
How ACA Can Help
ACA Compliance Group offers regulatory compliance technology solutions for reporting, filing, tracking, and managing compliance activities, which help ensure that your firm stays on top of all regulatory reporting deadlines. ACA also offers the ACA Regulatory Reporting platform, which is a fast-to-deploy, industry-leading solution for Form PF, AIFMD Annex IV, CPO/PQR, 13F, and emerging regulatory reporting obligations.
In addition, ACA’s Analysis and Review Center offers an annual Private Fund Reporting Depository Administration Service that includes manual completion and submission of Form PF for registered advisers that have an annual filing obligation.
For More Information
- Product Spotlight: How ACA’s Form PF Solutions Can Help Lighten the Load
- ACA Regulatory Filings Calendar for Investment Advisers
- Chairman Clayton States the SEC will Continue to Focus on Hedge Fund Compliance
- Compliance Corner Q1-2018: Regulatory Filings and Other Considerations That Hedge Fund Managers Should Note in the Coming Quarter