The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are seeking changes to crypto reporting rules for major hedge fund advisors.
In order to change these rules, institutions made joint statements.
CFTC and SEC Want to Change Reporting Rules
The CFTC and SEC are jointly proposing to amend the rules of Form PF, a confidential reporting form for private funds of certain investment advisors registered with the SEC. The common request of these two institutions is that hedge funds with a size of more than $ 500 million should open a separate chapter for their crypto investments. In addition, it is among the wishes of these two institutions that investment advisors provide more detailed information about crypto-related risks.
In a statement about the desired changes, the two institutions said:
“We also seek comment on the proposed rules and a range of alternatives, including whether certain potential changes to the proposal will apply to Form ADV.”
The Form PF changes, jointly requested by the CFTC and SEC, are intended to improve the Financial Stability Oversight Board’s capacity to monitor systemic risk. It is also aimed at strengthening the SEC’s control over private fund advisors and efforts to ensure investor protection. Form PF is a form that must be completed when one or more special funds are managed, or when the company has $150 million in special funds in a recent annual financial report. In this case, the company may need to register with the SEC or the CTFC, or both, depending on its transactions.
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