Hedge Funds Face Regulatory Reporting Challenges

Terry Flanagan

Advent Software and Advise Technologies are collaborating to provide tools to help hedge funds, hedge fund administrators, and private equity managers meet a range of regulatory reporting requirements.

The tools offer an integrated platform designed to address highly specialized Form PF and Form CPO-PQR filing requirements.

“The primary benefit of this collaboration is the integration of the systems from each firm, making it easier for clients to address regulations,” said Sean Sullivan, president of Advise Technologies. “Key to this synergy is the platform proposal we offer of a singular deployment capable of handling multiple filing requirements—it’s a powerful combination.”

Shared clients will receive consistent data for regulatory filings through Advent’s Geneva and Syncova, which, when combined with Consensus RMS, Advise’s regulatory and investor reporting system, offers integration between the two platforms to help manage reporting requirements.

Form PF, also known as rule 204(b)-1, is a reporting obligation implemented by the SEC to actively monitor and track systemic risk in the financial industry. It requires advisors of a certain size and complexity to report on a variety of categories for each fund they manage.

To complete Form PF, firms must gather significant amounts of data from multiple systems, aggregate specific data and then transform it into an XML format for submission, all within tight reporting deadlines. With the Form PF system, clients’ data from Advent’s Geneva and Syncova is automatically aggregated and validated via Advise’s Consensus RMS, making a complicated task much easier to manage and saving clients an enormous amount of time and effort.

“Advent is committed to partnering with industry leading solutions like those offered by Advise that provide value to our clients,” said Chris Momsen, executive vice president, sales and solutions management at Advent. “Regulatory demands, such as Form PF and Form CPO-PQR, are more pressing than ever and are at the top of clients’ minds. This collaboration will benefit our mutual and prospective clients by making them aware of key regulations and providing them with tools to help address them in a more efficient manner.”

Form CPO-PQR requires detailed reporting for any funds providing direct commodities exposure and must be filed on a quarterly or annual basis depending on the assets under management of the firm. A subset of CPO-PQR, the NFA’s Form PQR, is filed quarterly regardless of the fund’s assets under management or filing frequency for CPO-PQR.

“This solution gives clients the ability to file electronically using Advise’s Consensus RMS, significantly reducing the burden of filing while helping firms eliminate the errors often associated with manual processes,” said Sullivan. “In addition, both operational efficiency and overall consistency will be enhanced as data from both reports will come from a single data set.”

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