Form PF Solution
The adoption of Rule 204(b)-1 under the Investment Advisers Act of 1940 and the finalization of Form PF is a watershed event for private fund advisers. Rule 204(b)-1 will require SEC-registered investment advisers who manage private funds to report risk exposure statistics on a consistent basis starting June 15, 2012 on Form PF.
Form PF requires careful gathering, extracting, scrubbing and validating data from various internal and external sources before being converted into SEC required format. Further complexity is added by:
● Disclosure of ownership, transaction, position, borrowings, guarantees and portfolios
● Substantial new periodic disclosures
● Classification between hedge fund, liquidity fund and Private equity funds
● Extensive risk reporting requirements
● Detailed forms to be completed requiring extensive set of calculations
● Larger advisors need to complete larger set of data than smaller advisors
● Form PF solution addresses above requirements in an organized manner. The solution provides a Workflow based form creation and reporting based on funds RAUM (Regulatory Assets Under Management).
● This tool helps validate, standardize and aggregate both data collection and reporting across sources and types of data.
● The tool provides a seamless integration of P&L data, risk data and reference data to comply with SEC and CFTC mandate. The tool aggregates data on owners, portfolio, counterparties and investors.
● The tool helps create a comprehensive filing form for each applicable filing period, RUM, filing type for each fund.
● The tool reduces the burden of fund managers and compliance or Risk officers by creating collaboration and automating internal workflow process, filing dates, approvals and ability to recreate context of each filing.
Key Features & Capabilities
● Form PF reporting – including a draft for review and final formats for review and submission via XML
● Audit trail for underlying data relating to a Form PF report
● Documentation of methodologies and assumptions which are included in the filing
● Ability for clients to provide overrides for question responses and document additional methodologies
● Reporting process that minimizes your operational burden, while the investment manager maintains fund data ownership and filing responsibility