October 26, 2011, the SEC adopted a rule requiring advisers to hedge funds and other private funds to report information for use by the Financial Stability Oversight Council in monitoring risk to the U.S. financial system. The new Advisers Act requires investment advisers registered with the SEC that advise one or more private funds to file Form PF with the SEC. The final rule and Form PF were adopted with noteworthy changes from their proposed forms. Specifically, the final rule excludes from the reporting requirements advisers to private funds who manage in the aggregate less than $150 million in assets.

In addition, the final rule treats advisers to private equity funds differently from advisers to hedge funds and liquidity funds. Advisers to hedge funds and liquidity funds with at least $1.5 billion in assets are subject to heightened reporting and must report within 60 days (extended from 15) of the end of each quarter. Advisers to private equity funds generally will need to report less information and those advising at least $2 billion in assts are subject to heightened reporting. Advisers to private equity funds and other small advisers must report within 120 days (extended from 90) on only an annual basis. The final rule and Form PF is expected to be released soon on the SEC website.