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4.2 Recordkeeping and Reporting Obligations

<< Title IV Overview

4.2 Recordkeeping and Reporting Obligations

 

 


4.2.       Recordkeeping and Reporting Obligations.   Title IV imposes new recordkeeping and reporting obligations on registered investment advisers that are advisers to private funds. These new requirements supplement those previously required under the Advisers Act.  The SEC may require a registered private fund adviser (i) to maintain records and file with the SEC certain information relating to each private fund it advises and (ii) to provide or make available to the Oversight Council such information. [§404] This information shall include: (i) assets under management and use of leverage (including off-balance sheet leverage); (ii) counterparty credit risk exposure; (iii) valuation policies and practices; (iv) types of assets held; (v) side letters; (vi) trading practices; and (vii) such other information as the SEC, in consultation with the Oversight Council, may determine, which information may vary based on the type of investment adviser or the size of the private fund advised by the investment adviser. [§404]

The SEC shall be required to periodically examine all records maintained by registered advisers to private funds and shall be able to examine such records at such other times as it may determine. [§404]  Any information filed with or provided to the SEC by a private fund adviser shall be made available to the Oversight Council and to any Federal department or agency or any self-regulatory organization.  However, the SEC, the Oversight Council, and any such department, agency, or self-regulatory organization that receives such information from the SEC shall be required to keep it confidential. [§404]  Within 12 months of the date of enactment of the Act, the SEC and the CFTC are required to jointly establish the form and content of the reports to be filed with the SEC and with the CFTC by private fund advisers that are registered with both the SEC and the CFTC. [§406]