Two top U.S. markets regulators on Thursday jointly approved new reporting requirements for private funds and investment advisers, saying this would boost the government's ability to spot the build-up of risk in the $20 trillion private investment sector, Reuters reported. The Securities and Exchange Commission and the Commodity Futures Trading Commission also said they had agreed to share the confidential information collected on forms routinely filed by private funds. The changes will apply to SEC-registered funds and those registered with the CFTC as commodity pool operators or trading advisers, the agencies said. The amendments affect how advisers to large hedge funds will report exposures to investments, counterparties and currencies as well as exposures to countries and industries, the performance of investments by strategy and the liquidity of portfolios, among other things, the SEC said in a statement. This information can be used by the Financial Stability Oversight Council, an inter-agency body created in the wake of the Global Financial Crisis, to help monitor risk, it said.
