Statement Summary
The proposal to amend Form PF aims to recalibrate regulatory reporting obligations for private funds, which were originally exempted from the Investment Company Act. Recent attempts by the Commission to impose obligations that exceed those of mutual funds have faced judicial pushback. The new amendments address previous concerns of excessive compliance burdens, particularly for smaller advisers, and include raising reporting thresholds. Importantly, the proposal mandates a review of these thresholds every five years to ensure they remain appropriate. These changes reflect a commitment to effective regulation and aim to focus on significant advisers while alleviating unnecessary costs for smaller entities, promoting a more resilient marketplace.
Original Statement
I am pleased to support the proposal to amend Form PF, which represents a thoughtful recalibration of our regulatory approach to private fund reporting. Congress made a deliberate choice to exempt private funds from the Investment Company Act. However, over the past several years, the Commission has sought to impose regulatory obligations on private funds that exceed the obligations imposed on mutual funds through the financial stability authority in the Investment Advisers Act. Fortunately, the judicial system has served as a check on this unbounded reading of authority under the federal securities laws.
The Commission’s authority is best exercised when read in context of the broader statutory framework. The proposed amendments reflect a careful consideration of the regulatory obligations imposed on private funds and their advisers with the objective that the Commission and the Financial Stability Oversight Council (FSOC) receive the data necessary to monitor systemic risk and protect investors — and not to use Form PF as a backdoor attempt to more broadly regulate private funds.
The 2024 amendments to Form PF significantly expanded reporting requirements without adequate justification for additional data collection. It imposed disproportionate compliance burdens on smaller advisers and collected information that was neither actionable nor aligned with statutory authority. The amendments proposed today directly address these issues by, among other things, raising the reporting thresholds for all filers and large hedge fund advisers.
Importantly, the proposal includes a requirement that the Commission review the Form PF filing and reporting thresholds at least every five years to help ensure that these thresholds remain appropriately calibrated.
Good regulation demands a careful evaluation of the benefits of information collection and the burdens imposed on those who must comply. The Commission’s willingness to revisit and revise Form PF in light of the extensive criticism of the 2024 amendments demonstrates a commitment to regulatory humility and effectiveness. By focusing reporting obligations on the largest and most systemically significant advisers, while relieving smaller entities of unnecessary costs, these amendments better align with the statutory mandate and promote a more resilient and competitive marketplace.
I commend the staff of the Division of Investment Management, the Division of Economic and Risk Analysis, and the Office of the General Counsel for their diligent work, as well as the constructive engagement of market participants. The adoption of these amendments is a positive step toward a regulatory framework that is both robust and appropriately tailored, and I look forward to continued dialogue as we monitor the effectiveness of these reforms.
References:
- Form PF; Reporting Requirements for All Filers, proposed Apr. 20, 2026, available at, Investment Company Act of 1940 Sections 3(c)(1) and 3(c)(7), 15 U.S.C. § 80a-3(c)(1), (7).
- Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews, 88 Fed. Reg. 63206 (Aug. 23, 2023) [17 CFR 275 (Nov. 19, 2024)], available at, No. 23-60471 (5th Cir. 2024), available at note 1.
