SEC Charges Seven Private Fund Advisers For Repeatedly Failing To File Form PF

ADMINISTRATIVE PROCEEDING

File Nos. 3-22349; 3-22350; 3-22351; 3-22352; 3-22353; 3-22354; 3-22355

Dec. 13, 2024 – The Securities and Exchange Commission today announced settlements with seven registered investment advisers who repeatedly failed to provide required information that the agency uses to monitor risk.

According to the SEC’s orders, the advisers failed to file annual reports on Form PF informing the agency about the private funds they advise.  Private fund advisers managing $150 million or more of assets have been required to make filings, at least annually, on Form PF since 2012.  The orders found that the seven advisers were delinquent in their filings over multi-year periods.

The SEC uses information collected on Form PF in its regulatory programs, including examinations, investigations and investor protection efforts relating to private fund advisers.  The SEC publishes quarterly reports with aggregated information and statistics derived from Form PF data to inform the public about the private fund industry.  It also provides Form PF data to the Financial Stability Oversight Council to help it evaluate systemic risks posed by hedge funds and other private funds.

The SEC’s orders find that the advisers violated the reporting requirements of the Investment Advisers Act of 1940.  Without admitting or denying the findings, the advisers agreed to cease-and-desist orders, censures, and civil monetary penalties totaling $790,000.  During the SEC’s investigation, the advisers remediated their failures by making the necessary filings.

The SEC’s investigation was conducted by Anne Hancock and Oreste McClung and supervised by Brendan McGlynn, Corey Schuster, and Andrew Dean of the Enforcement Division’s Asset Management Unit, with assistance from Krista Evensen, Daniel Faigus, Matthew Harris, Jennifer Moldaver, Andrew Walsh, and Shipra Wells of the Division of Examinations’ Private Funds Unit.