The list of reporting requirements for investment advisers (“IAs”) is constantly growing. As a joint initiative between the Securities and Exchange Commission (“SEC”) and the U.S. Commodity Futures Trading Commission (“CFTC”) under the U.S. Dodd-Frank legislation (“Dodd-Frank”), Form PF was added as a filing requirement for registered investment advisers to Private Funds and certain Commodity Pool Operators (“CPOs”) and Commodity Trading Advisors (“CTOs”). This reporting obligation applies to IAs, CPOs, or CTAs who are registered or required to register with the SEC as investment advisers, advise one or more private funds, AND have at least $150 million in private fund assets under management as of the last day of the most recently ended fiscal year.
On February 12, 2014, the SEC added several new frequently asked questions (“FAQs”) to the Form PF FAQs posted on their website. The newly added FAQs cover topics such as private equity funds, aggregation of accounts, fund of funds, and investments in other private funds, among others.
Areas covered within the new FAQs are summarized below:
- Whether to include information regarding parallel managed accounts;
- The necessity to indicate whether you disregard or include a reporting fund’s investment in other private funds;
- Requirements for reporting information regarding the value of the reporting fund’s borrowings;
- Whether assets and liabilities that are not reported at fair value should be included; and
- How to treat short positions, derivatives, repurchase agreements, total return swaps, and other financial instruments for purposes of calculating regulatory assets under management.
For further information on this and other related subjects, please contact us at (619) 278-0020 to schedule a consultation.