Overview
- The SEC and CFTC unveiled a joint proposal to raise the Form PF filing bar to $1 billion in private fund assets and to lift the “large hedge fund” threshold to $10 billion, which the regulators say would still capture over 90% of private fund assets.
- The agencies estimate the shifts would remove roughly half of current filers and drop about two thirds of advisers from the large hedge fund category, while still covering about 81% of gross hedge fund assets.
- The proposal would end quarterly event reports for private equity advisers and narrow current reporting for large hedge funds, including giving firms 72 hours to file and dropping several triggers such as certain margin call and redemption stresses.
- The plan scraps prescriptive “look‑through” rules for indirect exposures, eases master‑feeder reporting, and streamlines many hedge fund questions on volatility, turnover, reference assets, and counterparty detail.
- Comments are due 60 days after Federal Register publication with at least a one‑year transition if adopted, and the agencies will review thresholds every five years and seek feedback on possible private credit reporting.