BNY Mellon unveils Form PF reporting tool

Fund Administration
19 Mar, 2013

BNY Mellon has unveiled a Form PF reporting tool for its fund administration clients.

The tool adopts two formats. The premium service entails BNY Mellon collecting and aggregating the data required by the SEC from internal and external sources. The standard service will see BNY Mellon receive calculated data from its clients.

Clients will then review the filing before submitting it to the SEC.  

Form PF’s intrinsic detail alarmed many hedge funds initially, which are required to submit the form either quarterly or annually depending on AuM, although most service providers acknowledged managers handled the process well.

Data requested by the SEC, which will then pass it onto the Financial Stability Oversight Board, the body created to monitor systemic risk, includes portfolio holding details, counterparty exposure, geographical concentration and collateral management details.

A number of institutional investors have made it no secret they would like to receive full or redacted versions of Form PF, something which a handful of fund administrators are working on.

Nonetheless, some experts fret investors might suffer an information overload if they spend too much time reviewing unredacted versions of Form PF during on-site visits, while other operational due diligence professionals have advised investors not get bogged down with Form PF at the expense of other aspects of the operational due diligence process.

There is debate as to whether regulators will change the format of Form PF with industry commentators complaining the form adopts a “one size fits all” approach rendering some questions irrelevant for certain hedge fund strategies. However, most concede any regulatory changes to the document will not be made in the near-term.

BNY MellonForm PFSECFinancial Stability Oversight Board