CFTC And SEC Propose Private Fund Systemic Risk Reporting Rules

The Commodity Futures Trading Commission and Securities and Exchange Commission on January 26, 2011, jointly proposed new rules (collectively "Proposed Rules") under the Commodity Exchange Act ("CEA") and the Investment Advisers Act of 1940 ("Advisers Act") to implement provisions of Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act") that require systemic risk reporting by registered investment advisers, commodity pool operators ("CPOs") and commodity trading advisors ("CTAs").¹ The Proposed Rules would require registered investment advisers to private funds, as well as CPOs and CTAs dually registered with the SEC and CFTC, to electronically file a new reporting form ("Form PF") with the SEC for use by the Financial Stability Oversight Council ("FSOC") in monitoring systemic risk to the U.S. financial system.² Form PF would require reporting of a wealth of information previously undisclosed to regulators relating to private