The Securities and Exchange Commission and the Commodity Futures Trading Commission have proposed scaling back hedge fund reporting requirements in a move aimed at reducing compliance costs and streamlining data collection on private funds, according to a report by Bloomberg.
The regulators have jointly outlined plans to significantly raise the threshold for mandatory reporting under Form PF. Under the new proposal, the reporting threshold for smaller advisers would increase from $150m to $1bn, while the definition of “large” hedge fund advisers would rise from $1.5bn to $10bn in assets under management.
Form PF is used by regulators to monitor systemic risk in private markets and supports supervisory and enforcement activity. The proposed changes would also remove a range of reporting fields deemed duplicative or of limited regulatory value.
The SEC said the reforms are intended to better align disclosure obligations with their original purpose while reducing unnecessary compliance burdens on fund managers. Industry groups broadly welcomed the initiative, arguing it strikes a more balanced approach between oversight and operational efficiency.
The move follows earlier delays to expanded disclosure rules introduced under the previous administration, which were partly designed to improve visibility into private market risk exposures after high-profile collapses exposed gaps in regulatory oversight.
