The SEC and CFTC have proposed a major overhaul of Form PF to reduce compliance costs for private fund advisers. Under the leadership of SEC Chairman Paul Atkins, the agencies aim to restore balance by eliminating "overly burdensome" disclosure requirements. The proposal raises the filing threshold from $150 million to $1 billion in assets under management. This change would exempt nearly half of the advisers currently required to report, refocusing regulatory attention on larger market players.
Large hedge fund advisers would also see significant relief as the exposure reporting threshold jumps from $1.5 billion to $10 billion. Despite these cuts, the agencies claim Form PF will still capture data on 90% of private fund gross assets. The new framework is designed to support Financial Stability Oversight Council (FSOC) monitoring while removing data collection that lacks clear regulatory benefits. Additionally, the amendments introduce a specific method to track funds active in the expanding private credit market.
Chairman Atkins described the move as a pillar of his agenda to cut the cost of compliance and allow advisers to focus on core investment functions. CFTC Chairman Michael Selig emphasized that streamlining the form will eliminate unnecessary costs while maintaining essential investor protections. The proposal is now open for a 60-day public comment period following its publication in the Federal Register. If adopted, the changes represent a definitive shift toward a more rationalized disclosure regime for the private fund industry.
