{"id":144782,"date":"2025-03-20T01:23:24","date_gmt":"2025-03-20T01:23:24","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/the-mfas-recommendations-to-the-sec\/"},"modified":"2025-03-20T01:23:24","modified_gmt":"2025-03-20T01:23:24","slug":"the-mfas-recommendations-to-the-sec","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=144782","title":{"rendered":"The MFA\u2019s Recommendations to the SEC"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<h2>The MFA\u2019s deregulation wishlist for the SEC<\/h2>\n<p>There has been a flourish of activity with the new Administration since President Trump was inaugurated on January 20, 2025, and one of his numerous Executive Orders focused on deregulation. Specifically, the <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/unleashing-prosperity-through-deregulation\/\" target=\"_blank\" rel=\"noopener\">Unleashing Prosperity Through Deregulation Order, Section 3<\/a> requires that whenever an agency promulgates a new rule, regulation, or guidance, it must identify at least 10 existing rules, regulations or guidance documents to be repealed. Practically, this Order may be difficult to govern. However, the spirit of the regulation is gaining momentum in the markets with one group focusing its efforts on the <a href=\"https:\/\/www.sec.gov\/\" target=\"_blank\" rel=\"noopener\">Securities Exchange Commission (SEC)<\/a>.<\/p>\n<p>In a letter to acting SEC Chair Mark Uyeda, the Managed Fund Association (MFA), a private fund industry group, has urged the SEC to reform or withdraw numerous regulations introduced over the last four years, some of which are still in various forms of dispute in the courts. The MFA said its recommendations would \u201creduce costs and burdens on market participants and improve the efficiency of the financial markets.\u201d<\/p>\n<h3>MFA recommendations include:<\/h3>\n<ul>\n<li>The MFA asked the SEC to withdraw its appeal of a Court decision on the \u201cDealer rule\u201d. The Court\u2019s ruling vacated the SEC\u2019s efforts to further define the term \u201cdealer\u201d and affirmed that alternative asset managers are not dealers. The SEC appealed the Court\u2019s ruling on January 17, 2025. If the Court\u2019s decision is reversed on the SEC\u2019s appeal, the MFA believes the \u201cDealer\u201d rule would be \u201cunworkable and harmful to investors and the markets.\u201d<\/li>\n<li>The MFA asked the SEC to extend the adoption date of the \u201c<a href=\"https:\/\/www.sec.gov\/rules-regulations\/staff-guidance\/division-investment-management-frequently-asked-questions\/form-pf-frequently-asked-questions\" target=\"_blank\" rel=\"noopener\">new Form PF<\/a>\u201d, which is scheduled to go live in March 2025. The MFA asked the SEC to extend the compliance with new Form PF until September 2025<\/li>\n<li>The MFA asked the SEC to review an update of the \u201cForm PF rule\u201d from 2023, which requires funds to disclose more information, such as events that may indicate significant stress or otherwise signal the potential for systemic risk and investor harm, including significant margin calls or counterparty defaults, within 72 hours of the event.<\/li>\n<li>The MFA asked the SEC to consider reducing the amount of information reported on short selling and securities lending while awaiting a court decision on whether those rules should be vacated entirely.<\/li>\n<li>The MFA has asked the SEC to take steps to create a framework to govern digital asset securities and to ensure that private funds can invest in them without breaching custody requirements.<\/li>\n<li>The MFA called for an immediate halt to the SEC Division of Enforcement\u2019s practice of \u201cregulation through enforcement,\u201d arguing that enforcement actions brought under the prior SEC regime had been overreaching and inconsistent with prior interpretation of securities laws and regulations.<\/li>\n<\/ul>\n<p>As of the date of this article, we are not aware of any formal response from the SEC to the MFA\u2019s letter.<\/p>\n<p>Questions on this topic? Contact your\u00a0<u><a href=\"https:\/\/keitercpa.com\/people\/\" target=\"_blank\" rel=\"noopener\">Keiter representative<\/a><\/u>\u00a0or our\u00a0<u><a href=\"https:\/\/keitercpa.com\/industries\/financial-services\/\" target=\"_blank\" rel=\"noopener\">Financial Services Industry Team<\/a><\/u>\u00a0|\u00a0<u><a href=\"https:\/\/keitercpa.com\/contact\/\" target=\"_blank\" rel=\"noopener\">Email<\/a><\/u> | 804.747.0000. We are here to help.<\/p>\n<p><iframe loading=\"lazy\" class=\"wp-embedded-content\" title=\"\u201cContinuation Funds: A Powerful Tool for Investment Fund Sponsors\u201d \u2014 Keiter CPA\" src=\"https:\/\/keitercpa.com\/blog\/continuation-funds-powerful-tool-investment-fund-sponsors\/embed\/#?secret=VPFeFScifX\" width=\"600\" height=\"400\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" sandbox=\"allow-scripts\" data-secret=\"VPFeFScifX\"><\/iframe><\/p>\n<\/div>\n<div>\n<p><em>The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.<\/em><\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>The MFA\u2019s deregulation wishlist for the SEC There has been a flourish of activity with the new Administration since President Trump was inaugurated on January 20, 2025, and one of his numerous Executive Orders focused on deregulation. Specifically, the Unleashing Prosperity Through Deregulation Order, Section 3 requires that whenever an agency promulgates a new rule, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[61163,3956,27078],"dealstore":[],"offerexpiration":[],"class_list":["post-144782","post","type-post","status-publish","format-standard","hentry","category-accounting","tag-mfas","tag-recommendations","tag-sec"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The MFA\u2019s Recommendations to the SEC - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=144782\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The MFA\u2019s Recommendations to the SEC - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"The MFA\u2019s deregulation wishlist for the SEC There has been a flourish of activity with the new Administration since President Trump was inaugurated on January 20, 2025, and one of his numerous Executive Orders focused on deregulation. 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