For its article “Form PF Current Reports: Reporting Trigger Events (Part Two of Two),” Hedge Fund Law Report quoted Akin investment management & private equity partner Brian Daly. The article examines how fund managers are determining whether a Form PF reporting obligation has arisen and ensuring that a complete and accurate current report is filed in a timely manner.
A few highlights:
- “The new Form PF reporting requirements arrived during a period that has seen some of the most dramatic changes in the Investment Advisers Act of 1940 regime. It’s yet another straw on the camel’s back in terms of compliance obligations,” said Brian. “Given the massive amount of transformation over the past 24 months – and what we expect to come in the next six months – there’s serious worry that this new filing process, which, in a vacuum, might be relatively straightforward, gets lost in the shuffle.”
- For close calls on whether a Form PF report is required, Brian noted that if you report something that is widespread and systemic, you may have someone from the SEC show up in your office the next day. “Now you’ve got a guest to entertain – and maybe educate – in addition to managing the situation that led to the report,” he posited. “You’ve got to do all this in real time, with the specter of enforcement actions hanging over you for the situation in general or for any misstatements or under-disclosures in your Form PF filing. It’s a lot of pressure, time and distraction,” he said.
- “My prediction is that the first widespread filing will occur because some broker will be realigning its business and will wind up changing the terms of a large number of agreements,” said Brian.
To read the full article and all of Brian’s observations, click here.
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