“Since the original Form PF mandate, we have worked closely with our clients to help them navigate through this intricate and operationally challenging process – right from data collection to electronic submissions. We have developed a stand-alone, comprehensive solution that can address these regulatory and reporting challenges, freeing our clients to focus on what is most important – growing their business,” said Dileep Bhat, NorthPoint Senior Manager. “Based on the success that we have had with recent filings and coupled with our platform’s ability to integrate with existing systems, we are convinced that our solution is effective for any fund looking for an efficient and extensible solution to simplify and manage the filing process.”
Form PF represents a historic change in the way funds have to report on how they operate their businesses. These new reporting requirements under the Dodd-Frank Act represent more than a typical back-office headache for the industry. Form PF, which was jointly adopted by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) last year, mandates that all registered investment advisors managing $150 million in assets or more submit this new reporting form to help government regulators monitor systemic risk to the U.S. financial system.
With this new regulation, firms had to be prepared to report on hundreds of data points, identify the sources and frequency of data, and aggregate and map all of the information accurately. Given the sheer volume of data being reported combined with the multi-source consolidation effort involved, many mangers were driven to seek outside expertise and support to meet their Form PF obligations.
To empower managers to meet the challenges associated with the Form PF requirements, the NorthPoint Form PF Solution provides a rich feature set and extensive data management tools wrapped in a simple-to-use, yet powerful interface – making the process intuitive, auditable, and well documented. The solution provides automation to make subsequent filings easily repeatable and consistent. The data is stored to allow easy access in the event of an audit.
However, the one-time collection and submission process is merely the beginning. Hedge funds with more than $1.5 billion in AUM will be required to file Form PF once per quarter. These requirements will be extended to a much broader group of fund platforms by year-end – December 15, 2012. NorthPoint has already kick-started client work for the December filings and will continue to help clients build a flexible, enterprise solution that helps position them for growth.
“Form PF need not be just a tedious compliance exercise. If done correctly, it could empower firms to become more organized through automated filings, strengthen enterprise risk management systems, and facilitate the process for reporting information to various constituents,”