On October 26, 2011, the U.S. Securities and Exchange Commission adopted a new rule and new reporting requirements affecting certain registered advisers to hedge funds and other private funds. Under direction and authority of the Dodd-Frank Act, the SEC will now require investment advisers with at least $150 million in private fund assets to periodically report certain information that will assist the Financial Stability Oversight Council ("FSOC") in monitoring systemic risks to the U.S. financial system. The reporting will be done on a new SEC Form ("Form PF"), the contents of which are to be kept confidential.
The amount of information and frequency of reporting required under this new rule depends upon whether the investment adviser is a "large private fund adviser" or a "small private fund adviser," as set forth in the chart below. Most filers will need to report certain "Fund Information," including the size of the fund, leverage, the type and concentration of investors, fund strategies, counterparty credit risk, use of trading and clearing mechanisms, liquidity, and overall fund performance. For certain advisers, Form PF may require reporting of information regarding separately managed accounts and affiliated funds and entities as described further in the instructions to the Form PF.
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INITIAL FILING DEADLINES AND FEES
The Form PF will be filed through the same electronic platform used by registered advisers to file registration information. Additionally, this new filing requirement, which is expected to bear a filing fee of $150, will be implemented in two phases. Private fund advisers with less than $5 billion in assets under management will be required to file Form PF within the time frames noted in the table above after the first fiscal year or fiscal quarter, as applicable, ending on or after December 15, 2012. Private fund advisers with $5 billion or more in assets under management, however, must file their initial Form PF after the fiscal year or fiscal quarter, as applicable, ending on or after June 15, 2012.