Managed Funds Association (MFA) President and CEO Richard H Baker has released a statement regarding the US Securities and Exchange Commission’s comprehensive report on private fund reporting detailed in Form PF.
Baker says: “MFA Members welcome the release of this data, which provides even more transparency into our globally-regulated industry.
“Alternative investment managers play an active role in the more regulated, more transparent capital markets brought about by the Dodd-Frank Act. MFA Members embraced many of these changes and continue to advocate for globally-consistent regulations that foster fair and efficient markets for all investors. Increased reporting requirements were part of these changes and hedge fund managers have provided regulators – through filings like Form PF – with the most fundamental data on their holdings.
“We have long held that the alternative investment industry – because of structural and regulatory factors – does not pose a systemic or destabilizing threat, even during times of financial crisis. The SEC’s most recent report provides additional support for this position based on extensive industry data. We look forward to continuing our work with regulators to support the shared goals of smartly regulated, fair and efficient markets.
“MFA also appreciates regulators’ efforts to ensure that the proprietary information funds provide on Form PF remains confidential and is not disclosed in a manner that could allow reverse engineering of trading strategies. We will continue reviewing the data in more detail to identify important characteristics of the private fund industry.”
The MFA has written to regulators regarding the industry's existing safeguards and structures – including size and concentration, relatively low leverage and existing regulatory oversight – which currently prevent hedge funds from posing systemic risks.