Firms are lagging behind in the preparation for filing Form PF, rules for hedge funds and private equity businesses which are a cornerstone of the Dodd-Frank Financial Act, according to Gravitas.
Deadlines are now rapidly approaching. Firms will have to disclose more information to the U.S. government than previously required . Funds with more than $5 billion in regulatory assets under management must file their initial Form PF with the SEC by August 29 of this year representing a view of their portfolios during April, May and June.
Advisors with $1.5 billion to $5 billion in regulatory assets under management will begin filing by February 28, 2013, and advisors with between $150 million - $1.5 billion will begin filing by April 30, 2013. Hedge funds and private equity firms across the board have been complaining about Form PF being extremely a burden of little value to regulators.
Its main purpose is to collect information for the Financial Stability Oversight Council, as outlined in Dodd-Frank, so that it can examine whether certain investment advisers possess inherent financial systematic risk.
Time is rapidly running out for firms to get ready to file Form PF, Gravitas warns.
“The vast majority of fund advisers we have spoken to are not ready for the depth and complexity of reporting requirements under Form PF,” said Gravitas Senior Managing Director Mark Seaman.
“It will take between four to six months for a typical large firm to prepare for Form PF, which means firms with an initial filing date of August 29th need to start working on a solution today, if they haven’t begun already.”
The amount of information reported and the number of firms subject to the filing requirements are significantly more comprehensive and complex as compared to previous regulatory reporting, according to the vendor.