With Form PF, The SEC Continues To Target An Enterprise-Wide “Culture Of Compliance.”

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Boston, May 23, 2013 –
Form PF is a serious step by U.S. regulators to inject and maintain a culture of compliance in private-fund firms that have until now been exempt from this type of reporting, says Aite Group in a new Impact Note announced today.Under SEC regulation, hedge funds are now required to make a senior executive, such as a chief compliance officer, responsible for ensuring completion and approval of Form PF.  Buy-in from
C-level officers and portfolio managers, along with implementation of a quality, enterprise-wide risk management program, will further establish a commitment to compliance. The requirement to file Form PF forces firms to take a hard look at internal risk practices and to establish a consistent framework for monitoring and disclosure.

Form PF

Aite Group’s research shows the information required in Form PF is substantially similar to the information required for compliance with the AIFMD in Europe and with other regions’ potential regulatory reporting requirements. Vendors should therefore keep up to date with these developments in order to offer global compliance-reporting solutions.

“Firms need to implement a valid and repeatable process and structure in order to avoid last-minute ‘fire drill’ efforts that can lead to reporting incorrect or inconsistent data. Deliberate and well-planned Form PF projects begun at least three months prior to filing will save ongoing time, effort, and expense,” says Lyn Marcrum, senior analyst in institutional securities & investments at Aite Group.

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