The SEC and CFTC Approve Joint Rule on Confidential Private Fund Risk Reporting

On Wednesday, October 26, 2011, and Monday, October 31, 2011, the Securities and Exchange Commission (the "SEC") and the Commodity Futures Trading Commission (the "CFTC") approved a new joint rule requiring certain advisers to hedge funds and other private funds to report information for use by the Financial Stability Oversight Council in monitoring risks to the U.S. financial system.  The rule, which implements Sections 404 and 406 of the Dodd-Frank Act, requires SEC-registered investment advisers with at least $150 million in private fund assets under management to periodically file a new confidential reporting form.

The reporting requirement follows a two-stage phase-in period.  Most private fund advisers will be required to begin filing following the end of their first fiscal year or fiscal quarter to end on or after Dec. 15, 2012.  Those with $5 billion or more in private fund assets must begin filing following the end of their first fiscal year or fiscal quarter to end on or after June 15, 2012.

Read the SEC press release rule

Read the CFTC press release rule

© 2011 Perkins Coie LLP

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