The SEC has voted unanimously to adopt a new rule requiring certain advisers to hedge funds and other private funds to report information for use by the Financial Stability Oversight Council (FSOC) in monitoring risks to the U.S. financial system.   The rule, which is mandated by the Dodd-Frank Act, requires SEC Registered Investment Advisors (RIAs) with $150 million or more in private fund assets under management (AUM) to periodically file a new reporting form (Form PF).   Information reported on Form PF will remain confidential. Large Advisers, Smaller Advisers. Private fund advisers are divided by size into these 2 broad groups, which will determine how much and how often information needs to be reported.  The SEC anticipates that most private fund advisers will be regarded as smaller private fund advisers.  The relatively limited number of large advisers, which must provide more detailed information, will represent a substantial portion of industry assets under management (as one would imagine). As a result, these thresholds will allow FSOC to monitor a significant portion of private fund assets while reducing the reporting burden for private fund advisers.

"The data collection form that we have adopted will address the dramatic lack of private fund information available to regulators today while easing the burden on private fund managers producing the data." -- SEC Chairman Mary Schapiro.

Two-Stage Phase In Period. To facilitate compliance with Form PF filing requirements, the SEC will implement the new rule in 2 stages.

1. Most private fund advisers will be required to begin filing Form PF following the end of their first fiscal year or fiscal quarter, as applicable, to end on or after 12/15/12.
2. Advisers with $5 billion or more in private fund assets must begin filing Form PF following the end of their first fiscal year or fiscal quarter, as applicable, to end on or after 6/15/12.

For the SEC "Fact Sheet" and other details, go to:  [SEC PR 11-226, 10/26/11].