The SEC is voting next week on hedgefunds disclosures

Next week, the Securities and Exchange Commission (SEC) will vote on whether to increase hedge fund disclosures.

The SEC is voting next week on hedgefunds disclosures

A proposal to increase hedge fund disclosures will be voted on by the Securities and Exchange Commission (SEC) next week in a bid to improve industry oversight and investor protections, the SEC's chair said.

A proposal will be put forward to amend the Form Private Fund (PF), which many hedge funds and other private funds use to report purchases and sales of securities on a quarterly basis.

In his recent comments, Gensler did not specify the changes proposed, but previously he said the SEC was looking into enhancing the frequency and detailing of these disclosures.

As part of the 2010 Dodd-Frank financial reform law, Form PF is used by the Financial Stability Oversight Council to monitor risk to the U.S. financial system.

Nevertheless, critics claim the forms do not provide enough information and that hedge funds operate with too little transparency. Following the March 2020 turmoil in the U.S. Treasury market, hedge funds came under fresh scrutiny and are at the center of the GameStop and AMC  ''Meme stocks'' saga and still are today.

Gensler said on Wednesday the agency would also propose new rules next week that would boost corporate pay disclosure - specifically, pay versus performance metrics - and boost transparency in the trading of U.S. Treasury notes.

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