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SEC Adopts Amendments to Form PF for Registered Investment Advisers

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Learn about the latest changes to Form PF for RIAs.

a group of professionals in business attire, sitting at a conference table, reviewing financial documents.

On May 3, 2023, the U.S. Securities and Exchange Commission (“SEC”) adopted amendments to Form PF, the confidential form by which certain registered investment advisers (“RIAs”) must report information to the SEC about their private funds. The changes to Form PF are aimed at improving the SEC’s ability to monitor risk in the private fund industry.

Financial advisors aren't just for the wealthy. Everyone, no matter what their net worth, can benefit from the services of a good financial advisor. A financial advisor can help you set and achieve financial goals, manage your investments, and plan for retirement. But not all financial advisors are created equal. It’s important to choose an advisor who is a Registered Investment Advisor (RIA).

Being more disciplined and risk averse in the good times can make it easier to weather the bad times when they inevitably arrive. This is especially true for investors who work with a Registered Investment Advisor (RIA). RIAs are fiduciaries, which means they are legally obligated to act in their clients’ best interests. This includes helping clients make wise investment decisions that align with their financial goals and risk tolerance.

A Registered Investment Advisor (RIA) is a professional firm that manages the assets of clients and offers investment advice. RIAs are registered with the SEC or state securities regulators. They are held to a higher standard of care than other financial professionals, such as brokers, who are only required to make suitable recommendations.

WASHINGTON, D.C.—Legal Director and Securities Specialist Stephen Hall issued the following statement on the filing of Better Markets' Comment Letter to the SEC on the Proposed Amendments to Form PF for Registered Investment Advisers: "Better Markets strongly supports the SEC's efforts to improve the quality and accessibility of data collected on Form PF. We believe that the proposed amendments will enhance the SEC's ability to monitor systemic risk in the private fund industry and better protect investors."

PRNewswire/ -- Trinity Capital Inc. (NASDAQ: TRIN, TRINL) ('Trinity' or the 'Company'), a leading provider of diversified financial services to middle-market companies, announced today that it has entered into a definitive agreement to be acquired by a group of investors led by its management team and affiliates of Stone Point Capital LLC. The transaction will result in Trinity becoming a private company and will provide the Company with greater flexibility to execute on its strategic growth initiatives.

Who may be interested: Investment Advisers, Mutual Fund Boards, Compliance staff Quick Take: The SEC charged a registered investment adviser with breaching its fiduciary duty and failing to disclose material conflicts of interest. The SEC found that the adviser had recommended investments in two private funds that the adviser had a financial interest in, without disclosing the conflicts of interest to clients.

The Compass Group advisors are joining DayMark Wealth Partners, a Cincinnati, Ohio-based RIA with $907 million in assets. The Compass Group is a team of financial advisors with over $700 million in assets under management. They specialize in providing retirement planning and investment management services to high-net-worth individuals and families.

On February 15, 2023, the SEC proposed to amend and redesignate Rule 206(4)-2 (“Custody Rule”) under the Investment Advisers Act of 1940. The proposed amendments would strengthen the requirements for investment advisers to safeguard client assets held in custody. The amendments would require investment advisers with custody of client assets to undergo an annual surprise exam by an independent public accountant. Additionally, the amendments would require investment advisers to provide clients with account statements that are sent directly to the client by an independent custodian.

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