Compliance Consultants Offer Insight and Expertise to Simplify New Reporting Requirements of Regulators
Wolters Kluwer Financial Services announced today that its Compliance Consulting Services team is helping U.S. securities firms simplify the completion of Form PF, which is required by regulators beginning this year to help monitor risks to the U.S. financial system.
Form PF is required as part of new rules adopted by the Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the new rules, investment advisers with at least $150 million in private fund assets under management that are registered with the SEC and dually registered with the CFTC must periodically provide regulators with details about their business. This includes information about each private fund under advisement, a description of investment strategy, trading and clearing practices, and risk metrics. The data that is collected will be kept confidential by the regulatory agencies.
The initial deadlines for submitting Form PF are phased by the type of fund adviser and the amount of private fund assets under management, beginning Aug. 29, 2012 and running through Apr. 30, 2013.
“The SEC has estimated that it will take between 40-100 hours to complete Form PF, but it will likely be a conservative estimate for many firms,” said Paul Murdock, director of Consulting and Professional Services – Enterprise Risk & Compliance, at Wolters Kluwer Financial Services. “Many firms will be surprised at the complexity in completing the form and the number of individuals they’ll need to devote specific attention to this project.”
Wolters Kluwer Financial Services’ U.S. securities compliance consulting team offers insight and expertise on completing the complex calculations required by Form PF, while helping ensure coordination between a firm’s internal functions, including compliance, operations, accounting and legal. The consultants—many of whom served as former lawyers, compliance analysts, regulators and compliance officers—can also provide analysis and annual review of a firm’s current compliance practices to identify potential gaps.