Wednesday, 23 July 2014
Last updated 6 hours ago
Oct 21 2011 | 9:39am ET
Hedge funds and private equity funds with assets over $1 billion will be required to provide “extraordinary amounts” of data to the U.S. Securities and Exchange Commission if the final version of the Form PF rule passes on October 26, said SEC chair Mary Schapiro.
That data will include information on fund assets, leverage, investment positions, valuation and trading practices. In addition to the increased oversight, the funds would be subject to routine inspections.
According to Bloomberg, Schapiro told a Managed Funds Association meeting in New York on Thursday the SEC has “high hopes for the Form PF data,” which she said would help the agency and the Financial Stability Oversight Council “understand where the risks are in the financial system.”
The form, required under the Dodd-Frank Act, is intended to help regulators avoid another collapse, like that of the Long Term Capital in 1998, that could threaten to destabilize the financial system.
Schapiro also told the conference the SEC would not consider short-selling restrictions like those to be imposed in the EU.
“I can’t envision the SEC doing another short-selling ban,” she said.
In the wake of recent insider trading investigations and prosecutions, Schapiro said hedge funds should ensure they have “robust compliance policies” in place.
“We’re right in the middle of so many cases and investigations,” Schapiro said, adding that funds should be “extraordinarily careful.”
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…