Data Art has launched a front-end application that will allow hedge funds to report their Form PF filings to regulators.
Since early 2012, Form PF has been one of the hottest regulation topics in the hedge fund industry. The first filing deadline for large hedge funds passed on August 29th, 2012, and smaller hedge funds have to file in 2013.
Financial firms have three options for Form PF filing:
-Manual filing online
-Automated filing using third-party tools
-Automated filing using in-house software
While there are pros and cons for every type of filing, many firms chose to go with an automated solution. There are several reasons to do so, with the most critical outlined below:
– Manual aggregation of external and internal data sources feeding into Form PF is not efficient
– Manual processes do not guarantee an error-free consistent methodology of data aggregation between filings
– There is a need for in-house filing approval workflows
Form PF automation assures reliable filing, and whatever solution is picked – third-party tools or in-house software – it consists of two parts:
– A front-end application providing Hedge Fund employees with a user interface for viewing, editing and accepting filing data
– A back-end system responsible for data gathering, aggregation, and storage
– The front-end part of the application is rather generic between firms and could potentially be re-used between them. The unique part of the system is the back-end aggregation system, as each company has its own internal and external data sources to be aggregated.
DataArt decided to simplify the implementation of automated Form PF filing for client firms and implemented a free front-end application, which provides the following basic features:
– An intuitive and easy-to-use application for creation, filing, viewing, editing, and approving the form
– Report sharing between multiple users
– Data validation
– Help with FAQ: instructions and Q&A from SEC
– User notes functionality for specific questions (for hedge fund/advisor internal use)
– History of past filings
Now, as firms have access to a free Form PF front-end application, they can focus strictly on the implementation of firm-specific functionality – data aggregation. This allows lowering the cost of their Form PF solution dramatically. Integration with the free front-end application is intuitive and easy and does not require investing significant time and money.
The solution is free of charge and allows users to create, edit and approve the forms. It also holds records of past filings and allows for report sharing between multiple users.
“This application is the first in a line of our complimentary solutions to help buy-side firms overcome new regulation requirements and optimize the cost of compliance reporting,” says Oleg Komissarov, a senior vice president at DataArt. “In the future, we will be releasing solutions in response to other reporting requirements, including AIFMD, FATCA, CPO-PQR and OPERA. We look forward to continuing to elevate the industry’s response and fluid adaptation to regulation challenges through collaborative, professional and cost-effective methods.”