Written by Curtis Flippen
Why is Form PF important?
The SEC requires investment advisors that advise more than $150 million in private fund assets to annually file Form PF to facilitate the Financial Stability Oversight Council’s (“FSOC”) monitoring of systemic risk in the private fund industry and to assist FSOC in determining whether and how to deploy its regulatory tools with respect to nonbank financial companies.
As noted in the SEC’s instructions to Form ADV, the SEC uses Form PF data to monitor industry trends, inform rulemaking, identify compliance risks, target examinations and enforcement investigations, and investor protection efforts relating to private fund advisors.
Failure to properly file Form PF can result in regulatory action. In June 2018, the SEC charged 13 private fund advisors with delinquencies in their filings. The SEC’s orders found that the advisors failed to file annual reports on Form PF informing the SEC about the private funds they advise, including the amount of assets under management, fund strategy, performance, and use of borrowed money and derivatives. The SEC encouraged advisors to take a fresh look at whether they are meeting their reporting obligations and adjust their compliance programs accordingly.
Foreside is issuing the following guidelines and reminders to investment advisors of private funds, including hedge funds and private equity, and is ready to assist investment advisors with their regulatory obligations.
Filing Guidance and Deadlines
Private Fund Advisors:
- The Form PF annual amendment is due within 120 days of the end of the funds’ fiscal year-end and must be filed by Friday, April 30, 2021, for firms with a December 31 FYE.
- Advisors to private funds that are fund of funds must file Form PF within 180 days of the funds’ fiscal year-end and must be filed by June 29, 2021, for firms with a December 31 FYE.
Large Hedge Fund Advisors:
- Form PF is due within 60 calendar days after the end of the advisor’s fourth fiscal quarter (i.e., if December 31, then March 1).
- For large hedge fund advisors that did not submit information relating to their other private funds with their fourth-quarter filing, Form PF is due within 120 calendar days (i.e., April 30, 2021).
- The filing must be made in the IARD system > Access the IARD system > then select PFRD Main.
- You must pay Form PF filing fees. Verify funds are available prior to submission.
- As always, an investment advisor must make accurate and forthright disclosures.
- Reportable assets under management (RAUM) should be calculated in the same manner as calculated for the investment advisor’s most recent Form ADV filing.
- Form PF Instructions (https://www.sec.gov/files/formpf.pdf).
- Form PF User Support (https://www.iard.com/pfrd/usersupport).
- Electronic Filing of Form PF (https://www.sec.gov/divisions/investment/pfrd.shtml).
- Reporting by Private Fund Advisors of Form PF (https://www.sec.gov/rules/final/2012/ia-3308-secg.htm).
- Form PF FAQ (https://www.sec.gov/divisions/investment/pfrd/pfrdfaq.shtml).