SEC, CFTC propose large hedge funds provide more financial disclosure

CFTC

A pair of U.S. regulators proposed expanding disclosure requirements for large hedge funds to include more information on their investment strategies, investment exposure, open positions, and borrowing arrangements with counterparties, among other areas.

On Wednesday, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) jointly proposed large hedge funds (with net asset value of $500 million or more) provide more detailed and granular financial information on Form PF than they have been required to since the form was established in 2011 by the Dodd-Frank Act.

The information on large hedge funds collected through Form PF is not made public but is provided to the Financial Stability Oversight Council, which uses it to protect investors and monitor systemic risk.

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