Private fund advisers managing $150 million or more of assets have been required to make annual filings on Form PF since 2012. (More often in some cases.) It’s really easy for the Securities and Exchange Commission to match the Form ADV data listing private funds to the Form PF filings for those funds. And it should be just as easy to find those firms who list private funds on Form ADV but didn’t file Form PF for those funds.
The SEC nabbed seven firms that failed to file Form PF for several years. The firms had to pay fines ranging from $90,000 to $150,000. It wasn’t clear why there was a relatively broad range of fines. Size of the firm? Size of the fund? There was no reason to find fraud or malice.
“The SEC uses information collected on Form PF in its regulatory programs, including examinations, investigations and investor protection efforts relating to private fund advisers. The SEC publishes quarterly reports with aggregated information and statistics derived from Form PF data to inform the public about the private fund industry. It also provides Form PF data to the Financial Stability Oversight Council to help it evaluate systemic risks posed by hedge funds and other private funds.”
Sources:
- SEC Charges Seven Private Fund Advisers For Repeatedly Failing To File Form PF
- Order – Greenhaven Road Investment Management, LP
- Order – Kudu Investment Holdings, LLC
- Order – GSSG Solar, LLC
- Order – Longpoint Partners LP
- Order – WPAM Advisers LLC
- Order – NFC Investments, LLC
- Order – The Catalyst Capital Group Inc.
- Form PF