May 11, 2012

The new Form PF requirements are no longer some Dodd-Frank regulatory headache that looms in the distant future for hedge funds. Beginning in June, funds with at least $5 billion in assets under management will have to start forking over mountainous volumes of data that will give regulators insight into their most intimate details.

[Form PF Will be a Painful Burden for Hedge Funds.]

And in December, hedge funds and other private fund advisers with at least $150 million in assets under management also will begin filling out the form, which is expected to help regulators monitor overall risks to the U.S. financial system.

The data extraction process is widely expected to be an arduous one for the industry, and the questions they'll have to answer on Form PF are anything but trivial. In order to complete a single report, hedge funds will fill out 440 data points across 14 categories. Regulators will then use that data to examine their investment positions and trading practices and get a sense of how a firm would react to a severe market plunge.

Advent Software has outlined the key dates for Form PF reporting that every hedge fund, liquidity fund, and private equity fund should have circled on its calendar.

See Chart Below:

BCBS
Form PF Timeline
ABOUT THE AUTHOR
As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced ...