Bryan Corbett: “The SEC claims they welcome comments from market participants for this and other rules but is unwilling to provide market participants adequate time to provide responses with the level of detail the Commission requests.”
WASHINGTON, DC – Managed Funds Association (MFA), the trade association for the global alternative asset management industry, today submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) in response to its proposed amendments to Form PF. The letter emphasizes that the comment period was far too short for MFA to provide adequate comments to the SEC and that, as a result, MFA will submit its full comments in the coming weeks.
“The SEC has proposed a substantial revision to Form PF, which will require entirely new, significant and costly technological builds for managers, service providers, and government agencies,” said MFA President and CEO Bryan Corbett. “Given the far-reaching consequences for the industry, including erecting higher barriers to entry, we don’t want to provide partial or incomplete comments. The comment periods provided this year have been consistently shorter than under any prior SEC, despite their agenda representing the most expansive series of rulemakings since the implementation of Dodd-Frank. The SEC claims they welcome comments from market participants for this and other rules but is unwilling to provide market participants adequate time to provide responses with the level of detail the Commission requests.”
In the letter, MFA points out that its request to the SEC and CFTC—cosigned by eight other associations—asking for a 60-day extension to the comment period was not granted. Further highlights from the letter are available below.
MFA highlights that they did not want to provide incomplete comments given the potential impact of the proposal. From the letter:
“This rule will have far-reaching consequences for our industry, and MFA does not want to provide partial or unexplained responses when with a few weeks more we can submit a much more useful response to the Commissions. As such, MFA is unable to submit comments by today’s deadline.”
MFA emphasizes that the comment period was too brief to enable MFA and its members to fully assess the impact of the proposal. From the letter:
“The comment period was too brief for MFA and its members to appropriately analyze the changes to Form PF, understand their full scope and implications, and collect, analyze, and present the detailed information and comments that the Commissions need.”
MFA shares that they will submit a comment letter in the coming weeks and work with the SEC to enhance the proposal. From the letter:
“MFA will continue to work on its comments and plans to submit them to the Commissions in the coming weeks. MFA appreciates the importance of collecting useful and informative data to regulators and looks forward to working with the Commissions and their staffs on enhancing the usefulness of the current Form PF in the most practical and least burdensome way.”
MFA’s letter to the SEC is available here.
About the Global Hedge Fund and Alternative Asset Management Industry
The global hedge fund and alternative asset management industry, including hedge funds, credit, managed futures, and hybrid funds that invest in private companies, has assets under management of $4.3 trillion (Q3 2021). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.
About the Managed Funds Association
Managed Funds Association (MFA), based in Washington, DC, New York, and Brussels, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 150 member firms, including traditional hedge funds, crossover funds, and private credit funds, that collectively manage nearly $2.6 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.