As the new rules of the Form PF amendments will come into force on March 12, 2025, the FINRA (“Financial Industry Regulatory Authority”) has published an early draft of the new Form PF XML schema, including a sample XML file.
The draft can be found under the following link: https://iard.com/future-pfrd-releases.
The new XML will reflect the following changes in the Form PF regulation:
- Enhanced Reporting by Large Hedge Fund Advisers on Qualifying Hedge Funds:
- Large hedge fund advisers (those managing hedge funds with a net asset value of at least $500 million) shall provide better insight into the operations and strategies of these funds.
- Reporting will cover investment exposures, borrowing and counterparty exposure, market factor effects, currency exposure, turnover, country and industry exposure, central clearing counterparty reporting, risk metrics, investment performance by strategy, portfolio liquidity, and financing and investor liquidity.
- Enhanced Reporting on Basic Information About Advisers and Their Private Funds:
- Advisers will report additional information about themselves and their private funds.
- This additional information shall improve data quality, comparability, and trend identification.
- The goal is to reduce reporting errors and assist in identifying trends that could create systemic risk.
- Amendment to Reporting Complex Structures:
- This change aims to improve the ability of the Financial Stability Oversight Council (FSOC) to monitor and assess systemic risk.
- It also provides greater visibility for both FSOC and the Commissions into these arrangements.
- Removal of Aggregate Reporting for Large Hedge Fund Advisers:
- Aggregate reporting for large hedge fund advisers will be removed.
- This change reduces the reporting burden on advisers and focuses Form PF reporting on more valuable information for systemic risk assessment purposes.
We will test the new XML schema in November and December and provide feedback to our clients. If you need any help with your Form PF reporting or have any questions regarding the upcoming changes, feel free to contact us at any time.
Source: Investment Adviser Registration Depository (IARD)
