SEC Acknowledges That It May Use Form PF Data in Enforcement Actions
The SEC indicated that it may use information reported on Form PF in enforcement actions. Within its Small Entity Compliance Guide concerning reporting on Form PF, the SEC indicated that it â€œdoes not intendâ€ to make Form PF information public in that the information would be linked to any particular adviser or fund, but the SEC may use the data for enforcement actions. Form PF is the new form which requires a great deal of information about private funds managed by newly registered hedge and private equity fund managers. According to the SEC, the primary purpose of Form PF is reporting to the Financial Stability Oversight Council for â€œuse in monitoring risks to the U.S. financial system.â€ The SEC also states that advisers considered â€œsmaller private fund advisersâ€ (i.e. between $150 Million and $1.5 Billion in assets under management) for Form PF purposes are not necessarily â€œsmall entitiesâ€ for purposes of the Small Business Regulatory Enforcement Fairness Act of 1996, which is a federal statute intended to lessen federal regulatory burdens on small businesses.
OUR TAKE: We suppose that most everybody assumed that the SEC would use the Form PF data for enforcement purposes even though its stated purpose was to supply the FSOC with market data.