SEC and CFTC Delay Hedge Fund Disclosure Deadline

The United States Securities and Exchange Commission and the Commodity Futures Trading Commission have postponed the filing deadline for Form PF hedge fund disclosures until July 1. This represents the fourth delay for the requirements, which were amended during the Biden administration to help regulators track systemic financial risks such as counterparty risk and sudden margin calls.

The extension follows a significant collapse at the AI-focused hedge fund Situational Awareness, which saw its assets under management plummet from $45 billion to approximately $10 billion in July after leveraged equities trades failed. Regulators have since issued subpoenas regarding the fund's collapse.

The private funds industry has consistently opposed the mandates, arguing that the required data on investment strategies could be leaked or hacked. In response, regulators are reviewing industry comments and considering a proposal to raise the filing threshold from $150 million to $1 billion in assets under management.