On October 26, 2011, the U.S. Securities and Exchange Commission adopted a new rule[1] and reporting requirements for certain advisors registered in hedge funds and other private funds. Under the Dodd-Frank Act, the SEC will now require investment advisors with private fund assets of at least $150 million to regularly disclose certain information that helps the Financial Stability Supervisory Board („FSOC”) oversee systemic risk to the U.S. financial system. The reports will be provided on a new SEC form („Form PF”), the content of which must be treated confidentially[2]. To ensure that our website works well for all users, the SEC monitors the frequency of requests for content SEC.gov to ensure that automated searches do not interfere with other people`s ability to access SEC.gov content. We reserve the right to block IP addresses that make excessive requests. Current policies limit users to a total of no more than 10 requests per second, regardless of the number of computers used to send requests. By using this website, you agree to security monitoring and auditing. For security reasons and to ensure that the public service remains accessible to users, this state computer system uses network traffic monitoring programs to identify unauthorized attempts to upload or modify information, or otherwise cause damage, including attempts to deny service to users. Large hedge fund advisors must submit an updated Pf form within 60 calendar days of the end of their first, second and third financial quarters. You must submit a quarterly update that addresses all points on form PF regarding advised hedge funds.

Within 60 calendar days of the end of their fourth fiscal quarter, large hedge fund advisors must submit a quarterly update to the PF form, which updates responses to all items. However, large hedge fund advisors may file an initial bid for the fourth quarter, updating information relating only to the hedge funds they advise, provided they amend the PF form within 120 calendar days of the end of the quarter to update information on the other private funds they advise. When leading hedge fund advisors file such a change, they are not required to update previously filed information for that quarter. For more information, please contact your representative at the lead law firm or one of the lawyers listed below. General emails can be sent via our contact form, which can be found under www.jonesday.com. When does an AIR company that manages a private fund need to submit a PF FORM? According to the SEC`s general instructions for Form PF, an RIA company must create and file a Form PF if the following three characteristics are met: If you do not meet the above criteria, you do not need to file Form PF or use the PFRD system. Where do I submit the PF FORM (and how much does it cost)? The PF form is submitted via the same electronic platform used by registered consultants to submit registration information. In addition, this new deposit requirement, which is expected to result in a $150 deposit fee, will be implemented in two phases. Private fund advisors with assets under management of less than $5 billion must file Form PF within the timeframes set out in the table above after or after the first fiscal year or quarter ending december 15, 2012. However, private fund advisors with assets under management of $5 billion or more must file their first Form PF after the fiscal year or fiscal quarter ending on or after June 15, 2012.

Note that this policy may change if the SEC manages to SEC.gov to ensure that the site operates efficiently and remains available to all users. Most private fund advisors must submit the PF form after the end of their first fiscal year. quarter ended December 15, 2012 or later. For example, a company whose quarter ends December 31, 2012 must file its first Form PF report with the SEC by April 30, 2013. Most investment advisors are not required to complete the PF form or use the PFRD system. Below is an excerpt from Form PF, which describes at a high level who must file: Given the above criteria, SEC-registered RIAs with less than $150 million in assets under private fund management, exempt reporting advisors, and state-registered RIAs are generally not required to file a Form PF. However, it is important to note that these companies are generally still required to file an ADV form that discloses general information about the private funds they manage. Here are some examples to further illustrate when a company may or may not need to submit a Pf form: The Private Fund Reporting Depository (PFRD) is a new electronic filing system that makes it easier for investment advisors to report information about private funds via the PF form. The U.S. Securities and Exchange Commission (SEC) website provides detailed information on the new reporting requirements for certain private fund advisors. The PF form can be submitted electronically through a web form, which is completed online, or by XML submission. According to the latest publicly available data from the Analytics Office of the Securities and Exchange Commission („SEC”), as of Q3 2020, more than 3,200 private fund advisors advise approximately 35,000 private funds that are currently filing a Form PF.

The amount of information and frequency of reporting required under this new rule will depend on whether the investment advisor is a „large private fund advisor” or a „private small fund advisor,” as shown in the table below. Most registrants are required to report certain „fund information”, including fund size [3], leverage, investor nature and concentration, fund strategies, counterparty credit risk, use of trading and clearing mechanisms, liquidity and overall fund performance. For some advisors, Form PF may require the reporting of information about separately managed accounts and affiliated funds and entities, as further described in the instructions on Form PF. Advisors with „small” and „large” private equity funds must submit form PF each year within 120 days of the end of their fiscal year. They must answer questions that focus on the extent of leverage of their funds` holding companies, the use of bridge financing, and their funds` investments in financial institutions. For best practices for efficiently downloading information from SEC.gov, including the latest EDGAR submissions, see sec.gov/developer. You can also sign up for email updates in the SEC Open Data program, including best practices that make downloading data more efficient and SEC.gov improvements that can affect scripted download processes. For more information, please contact opendata@sec.gov. For more information, see the SEC`s Privacy and Security Policy.

Thank you for your interest in the U.S. Securities and Exchange Commission. 5 A „liquidity fund”, as defined in the adopted press release, is any private fund that wishes to generate income by investing in a portfolio of short-term bonds in order to maintain a stable net asset value per unit or to minimize capital volatility for investors. .