DFW Lawyers Fear Proposed SEC Regulations Could Trigger Noncompliance for Some PE Firms, Hedge Funds

Investigative and litigation attorney Scott Mascianica spoke to the Dallas Business Journal about the Securities and Exchange Commission's new regulations that would increase the amount of information and frequency that some private investment firms would be required to report. According to the article, the proposal would amend aspects of Form PF, a document private equity and hedge funds use to confidentially report financial performance metrics, which the federal regulators said would give them more information to assess market events and protect investors. One of the amendments requires quick turnarounds, requesting that large hedge funds and private equity funds file a Form PF within one day of major business events while another adds more reporting requirements for private equity funds. However, Mr. Mascianica warns of the potential drawbacks of the new amendments.

"The blockbuster aspect of this proposal involves the near-real-time disclosure requirements of certain reporting events," said Mr. Mascianica. "Near-real-time disclosure requirements for a litany of events, many of which could be the result of a variety of market forces, would be a significant burden for private fund advisors subject to the proposal."

READ: DFW Lawyers Fear Proposed SEC Regulations Could Trigger Noncompliance for Some PE Firms, Hedge Funds (subscription required)