The SEC on Wednesday approved final rules on collection of systematic risk data from private fund managers, including hedge funds and private equity, John Nester, an SEC spokesman, confirmed in an interview.
Hedge fund firms managing at least $1.5 billion and liquidity or money market fund managers with at least $1 billion in assets under management will be required to report quarterly. Private equity managers with more than $2 billion under management will be required to file annually. These “large” private fund managers will have to provide more detailed information than smaller managers, according to an SEC fact sheet.
All other hedge fund managers, liquidity/money market fund managers and private equity managers with more than $150 million under management will be subject to annual reporting requirements.
Private fund managers of all strategies managing at least $5 billion must report following the end of their first fiscal year or quarter that ends on or after June 15, 2012; smaller managers subject to reporting requirements must do so following the end of their first fiscal year or quarter that ends on or after Dec. 15, 2012.
The new rule implements sections 404 and 406 under the Dodd-Frank Act, which require SEC-registered private fund managers to report data about their investment portfolios to enable the Financial Stability Oversight Council to monitor threats to U.S. financial stability that could be posed by such managers.
Mary Schapiro, SEC chairwoman, told commissioners at Wednesday's meeting that the new data collection form, known as “Form PF” for “private fund,” is a document that will “address the dramatic lack of private fund information available to regulators today, while easing the burden on private fund managers producing the data, so that the same data collection approaches and protocols apply cross-border where appropriate,” according to a transcript of her prepared remarks.
Ms. Schapiro stressed the data provided by private fund managers is confidential.
Final adoption of Form PF rules are subject to approval of the Commodity Futures Trading Commission. R. David Gary, a CFTC spokesman, said in an interview that there is no time frame for CFTC approval.