Comment Letters on the Form PF Proposal: Suggestions to Tailor the One-Business-Day, Stress-Related Reporting Events (Part Two of Three)

Among the array of reforms in the 236 pages of the SEC’s proposed amendments to Form PF (Proposal), arguably the most worrisome for fund managers relate to the new Section 6 created therein that would require filings to be made within one business day of the occurrence of certain stress-related events. Comment letters submitted by industry professionals that were reviewed by the Private Equity Law Report expressed myriad concerns about the requirement, ranging from the haste of the reporting, the swath of sponsors subjected to the requirement and the types of incidents triggering a reporting event. This three-part series summarizes a subset of representative comment letters in anticipation of final Form PF reforms by the end of the year. This second article notes certain critiques of the stress-related reporting events in the new Section 6 of Form PF that would require reporting within one business day. The third article will offer suggestions to reform PE funds’ new annual reporting items and the reduced threshold for PE sponsors to file, as well as to modernize certain defined terms. The first article highlighted general observations in the comment letters about the scope, intent and purpose of the Proposal. See our two-part series: “SEC’s Proposed Amendments to Form PF and Advisers Act Introduce Uncertainty, Increase Burden on Compliance Staff” (Mar. 15, 2022); and “Quarterly Reporting Requirements and Prescriptive Prohibited Activities in the SEC’s Proposed Amendments to the Advisers Act” (Mar. 22, 2022).

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