FOR IMMEDIATE RELEASE

May 3, 2023

CONTACT
Carter Dougherty
carter@ourfinancialsecurity.org
(202) 251-6700

SEC’s Expansion of Form PF Will Be Instrumental In Helping Regulators Identify Systemic Risks in the $25 Trillion in Private Funds

Washington, D.C. – The Securities and Exchange Commission (SEC) today finalized a plan to require private funds, which include hedge funds and private equity firms, to disclose more information about their investments to the SEC.

Although private funds manage $25 trillion, they have been subject to far less reporting requirements and scrutiny than the $23 trillion in the banking system.

“Private funds are no longer some small corner of the financial industry, but now one of the largest pools of capital with significant impact across the economy and other financial institutions,” said Andrew Park, senior policy analyst for hedge funds and private equity at Americans for Financial Reform Education Fund. “This change will help regulators gain more transparency into private funds so that they are not blindsided by disruptions to these systemically important financial institutions.”

Following the passage of Dodd-Frank, private funds over $150 million simply had to report their assets under management and additional borrowed capital to the SEC over Form PF. With the passage of today’s amendments to Form PF, the SEC will now receive, confidentially, greater details about the individual holdings of private funds as well as disclosure of sudden losses or withdrawals, affording them greater insight into the risks in the industry.

For more information, read the comment AFREF initially submitted to the SEC supporting this rule.   

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