The SEC has finalized rules enhancing reporting requirements for hedge funds and private equity. The latest rule proposal process, which started in January 2022, means that private fund managers will have to deliver in greater detail and on shorter timelines information that might indicate risk or even danger to the financial system.

Hedge funds with at least $1.5 billion in assets under management will have 72 hours at most to report "certain events that we believe may indicate significant stress or otherwise serve as signals of potential systemic risk implications or as potential areas for inquiry so as to mitigate investor harm," the SEC wrote. Such events include "extraordinary investment losses, certain margin events, counterparty defaults, material changes in prime broker relationships, operations events, and certain events associated with redemptions."

Private equity funds would have 60 days after the end of a quarter to report secondary market transactions and "general partner removals and investor elections to terminate a fund or its investment period." Funds of more than $2 billion will also have additional annual reporting requirements, including strategies and use of leverage.