Northern Trust launches online Form PF toolkit

Fund Administration
14 May, 2013

Northern Trust Hedge Fund Services has unveiled an online tool to help streamline the Form PF submission process.

The system provides an interactive, online workflow tool for compiling, reviewing and finalising Form PF filings. The toolkit is integrated with Northern Trust’s Hedge Fund Passport application.

Users will be able to navigate each section of the Form PF online, while custom strategy and attribution tags are applied to securities and positions to help categorise holdings data. Calculation methodologies for individual questions can be adjusted based on the clients’ assumptions.

“Form PF requires data from multiple sources, with many questions open to interpretation, making the filing process both complex and labour intensive. This tool leverages the power of our technology to help clients address that complexity efficiently,” said Peter Sanchez, CEO at Northern Trust Hedge Fund Services in Chicago.

The SEC and CFTC have told managers to use their best discretion on the methodologies used to calculate risk exposures, prompting concerns data could vary substantially across managers.

Form PF submission to regulators has proven a challenge for numerous managers although most appear to have handled the process adequately. Nonetheless, several service providers have advised managers to devote more time to future filings so as to avoid a last-minute dash.

A new challenge that is increasingly emerging surrounds disclosure of Form PF to investors. A majority of managers appear open to full disclosure of the document on-site, although some are offering electronically available redacted versions.

Lawyers predictably have advised caution, warning managers not to afford some investors preferential treatment.  Managers have also been told to avoid misrepresenting information in redacted Form PF versions, something which will inevitably draw SEC attention. Managers sending out redacted Form PFs could also face questions from the SEC on why they did not disclose the form in its entirety to investors.


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