In a move that could significantly ease regulatory pressure on hedge funds and private equity firms, US Securities and Exchange Commission Chairman Paul Atkins has called for a reassessment of new data reporting rules, according to a report by Bloomberg.
The move suggests that the scope of required disclosures from private fund advisers may soon be narrowed.
Speaking during a commission meeting on Wednesday, Atkins said he had “serious concerns” about whether the burdens imposed on fund managers by the new Form PF amendments were justified by their utility to regulators. He has instructed SEC staff to launch a “comprehensive review” of the rules, which were introduced under former Chair Gary Gensler as part of a broader push to monitor systemic risk in private markets.
Crucially for the hedge fund industry, the SEC has also delayed the compliance deadline for the new rules to 1 October, from the original date of 12 June, with the extension providing fund managers with additional breathing room, particularly those grappling with technical implementation challenges.
The rules, which had been strongly opposed by industry trade groups including the Managed Funds Association (MFA), require private fund advisers to submit more detailed and time-sensitive data on portfolio exposures, margin activity, and investment performance by strategy. Critics argue the requirements are both onerous and duplicative, with limited benefit to investor protection or market stability.
“The question is whether the government’s use of this data justifies the massive burdens it imposes,” Atkins said, echoing concerns voiced by fund managers who argue that the rules could disproportionately impact smaller and mid-sized firms.
While Atkins’ position aligns with much of the hedge fund industry, it sparked dissent from Democratic Commissioner Caroline Crenshaw, who accused the agency of “wilfully blindfolding” itself at a time when it is also exploring policies to expand private market access to retail investors.
The Commodity Futures Trading Commission (CFTC), which shares oversight of private funds, also voted to extend the compliance deadline following the SEC’s decision.
