The joint proposal would exempt more than half of current Form PF filers, sharply narrowing oversight of smaller private fund advisers.

April 22, 2026

Federal financial regulators are moving to scale back disclosure obligations for hedge fund and private fund investment advisers, reversing course on enhanced requirements adopted under the previous administration.

The Securities and Exchange Commission and the Commodity Futures Trading Commission jointly proposed amendments on April 20 that would significantly raise the reporting thresholds for Form PF. The disclosure form, introduced in 2011, gives regulators and the Financial Stability Oversight Council confidential insight into private funds, including exposure across industries and countries, helping authorities monitor systemic risk.

Higher Thresholds, Fewer Filers

Under the proposal, the fund-size threshold triggering Form PF compliance would climb to $1 billion in private fund assets under management, up from $150 million. For entities classified as large hedge funds, the threshold would rise to $10 billion from $1.5 billion.

Regulators estimate the adjustment would exempt more than half of advisers currently required to submit the form. Even so, the agencies contend that Form PF would still capture roughly 90% of private fund gross assets and preserve detailed exposure data for large hedge fund managers. The proposal also introduces a mechanism to identify funds active in the private credit market.

A Continued Push to Ease Compliance

SEC Chair Paul Atkins has consistently advocated trimming disclosure obligations, previously extending compliance deadlines and advancing rules that lighten reporting demands. Last year, the SEC pushed the compliance deadline for the enhanced confidential disclosures required under a 2024 rule from the Biden era until October 2026. Atkins framed the new proposal as part of his broader agenda to rebalance disclosure requirements and cut compliance costs.

The proposal arrives after a stretch of volatility in private credit markets, where retail-oriented private credit funds have faced mounting redemption requests. Several asset managers have capped withdrawals in response, raising concerns among retail investors and industry observers.

Thinned Commissioner Ranks

The regulatory shift also reflects the political composition of both agencies. When the SEC delayed the Biden-era rule last September, then-Democratic Commissioner Caroline Crenshaw argued that Republican commissioners intended to effectively replace the rule rather than simply postpone it. Crenshaw departed the Commission in January, leaving both Democratic seats vacant.

At the CFTC, Republican Chair Michael Selig currently serves as the sole commissioner. Together, the two agencies, which are supposed to seat a combined 10 commissioners, are operating with just four.

Regulators will accept public comments for 60 days following publication of the proposal in the Federal Register.