The Securities and Exchange Commission, by a 3 to 1 vote on Wednesday, extended the deadline for private investment funds to comply with a rule that requires enhanced confidential disclosures about portfolio investments and risks.
The lone voter against the extension, Commissioner Caroline Crenshaw, suggested during the meeting that the other commissioners were consistently delaying the effective date of amendments made last year, under former President Joe Biden, in order to reverse them before they take effect. Crenshaw has been the only Democrat on the commission since former Commissioner Jaime Lizárraga resigned in January; the other spot reserved for a Democrat has not been filled.
Private funds and advisers now have until October 1, 2026, to comply with the rule, giving the agency time to develop regulations less stringent toward private investment funds, officials said during the meeting.
President Donald Trump’s August executive order related to private market investments also directed the SEC, in consultation with the secretary of labor, to consider “revisions to existing SEC regulations and guidance relating to accredited investor and qualified purchaser status, to accomplish the policy objectives of this order.”
For more stories like this, sign up for the CIO Alert newsletter. ?
The SEC’s vote marks yet another instance in which the agency has extended the deadline by which private funds need to complete changes to Form PF, which was approved by the Commodity Futures Trading Commission and SEC last year. The rules, designed to help assess the risk to the private investment industry, require private funds and advisers to give the regulators confidential information about the exposure they have to certain investments, counterparties, currencies, countries and specific industries.
The initial compliance date of the amendments was March 12, which the commission extended to June 12, to October 1 and now until October 1, 2026. SEC Chair Paul Atkins said the extensions allow the agency to address transitional challenges brought by market participants.
“I have directed the Division of Investment Management to consider whether we can reduce the number of advisers required to file the form without meaningfully reducing the key risk and exposure information needed by the Commissions and by the other [Treasury Department Financial Stability Oversight Council] member agencies,” said Atkins, according to a copy of his prepared remarks.
The Alternative Investment Management Association, in a statement released after the SEC’s decision, said the additional time provides the commission “an important opportunity to consider a more proportionate version of the form.”
#SEC #Postpones #Disclosure #Deadline #Private #Investment #Funds