Form PF: Recent Developments

Recent lobbying efforts to have the Securities and Exchange Commission ("SEC") ease the burden of Form PF has resulted in significant changes. The new rules, which were announced on October 26, 2011, include changes to the minimum assets under management ("AUM") thresholds for filing Form PF, the start date for compliance and the length of time advisers would have to file. Specifically, the SEC raised the minimum AUM threshold for hedge funds to comply with the annual filing of Form PF to $150 million in AUM. Accordingly, advisers with less than $150 million in AUM will not be required to file Form PF. Form PF was created to allow regulators to monitor large hedge funds for systematic risk information. Under the new rules, advisers with AUM between $150 million and $1.5 billion will have to report on an annual basis. Advisers with AUM of $1.5 billion or greater will be required to file quarterly. The SEC also delayed the initial filing date by at least six months. Advisers with AUM of $5 billion will have until June 15, 2012 to begin filing on a quarterly basis. All other advisers will have until December 15, 2012 to file. Finally, the SEC also changed the allotted time that advisers have to file the Form PF. Large hedge fund advisers (those with $1.5 billion or more in AUM) will have to file within 60 days after their quarter end. Smaller advisers and large private equity fund advisers will have to file within 120 days after their fiscal year end. Full details on the SEC's changes remain confidential until the Commodities Future Trading Commission approves them, which is expected to occur next week.

If you have any questions, please contact Daniel G. Viola at 212.573.8038 or

Cheryl Spratt