Private Investment Reporting Rule Deferred Declares US SEC

The top regulator of Wall Street said on March 21 that it has deferred a planned vote on a proposed rule that will aid in protecting the stability of the financial system by way of detecting risk across the $20 trillion private asset management sector.

Last week, the US Securities and Exchange Commission announced that it will vote on March 22 on whether a proposal that was issued last year that would require large and private money managers to alert the agency when it comes to signs of stress and even mounting risks across the assets that they handle needs to be adopted.

However, a spokesperson from the SEC confirmed on March 21 that the officials have come to the conclusion that the text pertaining to the proposal wasn’t quite ready when it came to adoption, and therefore they have removed it from the scheduled public meeting’s agenda.

The spokesperson added that it has indeed been a busy few weeks, and the commission has decided that it is going to take a little more time when it comes to Form PF adoption release.

The asset volume under private management has more than doubled in the decade since the SEC started collecting such data, thereby prompting fears that the financial risks can indeed build up, going undetected.

The financial system shook last week with the almost-collapse of Credit Suisse, a Swiss lender that in 2021 lost billions that had been held by one of the now-defunct capital management firms.

The SEC on March 22 is still due to take into account more proposals that are related to the electronic filing of certain forms and data, stock exchange public disclosures, and broker-dealers.