The U.S. federal financial regulators — the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) — are further delaying the compliance date for new private fund reporting requirements until mid-2027, as they contemplate rolling back those demands.
In a joint notice, the CFTC and the SEC announced that the revised reporting requirements for certain SEC-registered advisors to private funds — including hedge funds, private equity funds, real estate funds, securitized asset funds, liquidity funds and venture capital funds — are being pushed back to July 1, 2027. They had been due to take effect Oct. 1.
The regulators initially revised the private fund reporting requirements in February 2024, although industry firms initially had until March 2025 to comply with the new requirements. But the deadline for complying with those new requirements has repeatedly been delayed.
To start, the deadline was pushed back amid industry complaints about compliance challenges, and most recently it was delayed after the regulators proposed potential changes to reduce the compliance demands on private fund managers.
Back in April, the regulators proposed changes to the new requirements that would, among other things, significantly raise the filing threshold (such as increasing the reporting cutoff for large hedge funds from US$1.5 billion in assets to US$10 billion), eliminate certain reporting obligations and streamline other requirements.
The comment period on those proposals closed on June 23. Now, the regulators are again delaying compliance as they consider the feedback received on the latest policy proposals.
“The primary benefit of the delayed compliance date is that it will allow advisors to avoid the costs,” of adopting any of the 2024 amendments that could be eliminated or revised under the latest proposals, the regulators said — while also delaying the benefits of enhanced oversight in the private fund markets.