Implications of the Dodd-Frank Act on Private Funds

Henry Raschen of HSBC Securities, has a short piece at about the Dodd-Frank Act (“DFA”).  (FTSEGM).  Some quick take-aways:

  • The registration requirement applies to US private advisers and non-US private advisers that advise funds with US investors;
  • Many smaller non-US domiciled private advisers may have failed to register correctly;
  • All registered private advisers with a least $150 million in private fund assets under management must periodically file a Form PF;
  • All private advisers must provide basic information about themselves including:  AUM, investment concentration, borrowing, liquidity and performance;
  • Large private advisers must provide more detailed reports

One thing is for sure, the regulatory burden for hedge funds and private equity funds has increased significantly under DFA.   While there will be an initial adjustment period for those running these funds, the transparency for investors will be a good thing.

Here are some useful links:

  • SEC Private Fund Reporting Depository home page.  (PFRD)
  • SEC Form PF (42 pages with an 8 page glossary).  (Form PF)
  • Form PF FAQ page. (FAQ)


Posted on October 28, 2012 in Compliance, Dodd-Frank Act, Investment Advisors, Investments, RMBS, SEC

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