Wed, May 10, 2023
As part of the Securities and Exchange Commission’s (“Commission”) continued focus on the regulation of the private fund industry, the Commission has adopted amendments to Form PF. The amendments will significantly impact the timing and reporting obligations of registered private equity advisers, large hedge fund advisers (defined as those advisers with at least $1.5 billion (bn) in assets under management) and large private equity advisers (defined as advisers with at least $2 bn in assets under management) around certain material events (“triggering events”). We expect certain event notification requirements will become effective by the end of 2023, and the entire rule by the end of 2024 pending publication in the Federal Register. Kroll can assist private fund managers in assessing their risk reporting and/or trading system alerts, as well as in developing policies and procedures to comply with the rule amendments. Triggering events include:
Effective six months after the rule is published in the federal register, large hedge fund advisers are required to submit a current report following one of these events to the Commission no later than 72 hours from the occurrence of one or more triggering events, while all registered private equity advisers are required to file an event report addressing any triggering event within 60 days after each fiscal quarter ends.
In addition, effective one year after the rule is published in the federal register, large private equity advisers are required to annually report information pertaining to (1) any claw back to any general partner or limited partner within the past year; (2) information pertaining to its fund(s) strategies; and (3) any use of leverage.
Following the enactment of the new filing requirements, we expect that both examiners and enforcement will focus on the timely filing of the Form PF disclosures—similar to the exam initiative in 2018 (which resulted in 13 enforcement actions related to delinquent filings). Our team can help advisers comply with regulatory filing requirements as well as regulatory examinations.
Kroll will work with private fund advisers to:
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Within our Regulatory Advisory and Assurance Services, we assist financial services firms in a range of engagements across our suite of subject matter expertise.