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January 26, 2022

Better Markets Applauds SEC Proposed Rule Amendments To Enhance Private Fund Reporting

FOR IMMEDIATE RELEASE
Wednesday, January 26, 2022
Contact: Evelyn Swan at 202-618-6433 or eswan@bettermarkets.org

WASHINGTON, D.C.—Stephen Hall, Better Markets Legal Director and Securities Specialist, released the following statement on the SEC’s proposed amendments to reporting requirements for advisers to hedge funds, liquidity funds, and private equity funds:

“We applaud the Securities and Exchange Commission for today’s vote to strengthen the reporting requirements applicable to SEC-registered investment advisers to private funds. These proposed amendments to Form PF will better protect investors and markets by enhancing regulators’ ability to monitor systemic risk and by bolstering the Commission’s regulatory oversight of private funds

“Advisers to large hedge funds and liquidity funds are currently required to report data on a quarterly or annual basis under the Dodd-Frank Act. The Commission’s proposed amendments will require fund advisers to report certain events, such as “extraordinary” investment losses at a hedge fund, within one business day, providing FSOC and the Commission access to more timely information to analyze and assess risks as they emerge, particularly during fast-moving market events. The Commission’s proposal will also substantially increase reporting from the private equity industry by lowering the threshold for reporting as a large private equity adviser from $2 billion to $1.5 billion in assets under management.

“These welcome reporting enhancements will safeguard investors and reduce the risk of the kind of financial system crash that leaves the American taxpayer holding the bill for risky market speculation.   We’ll be reviewing the proposal in greater detail to determine if and how it might be strengthened, but we are encouraged by this forward progress in filling an important regulatory gap.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.

Stephen Hall
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