New York partner Kay Gordon was quoted in an HFMweek article titled, “Form BE-10 filing delayed after wave of hedge fund concern.” The article discussed the U.S. Department for Commerce’s Bureau of Economic Analysis’ deadline for filing the BE-10 benchmark surveys and the concerns from hedge funds and other investors that they would be unable to complete the survey by the required deadline.

Originally, only a small number of firms were required to fill out the survey, but now it applies to anyone with a direct investment in a foreign business equating to 10 percent or more of voting securities. Due to this change, the department has received a large amount of extension requests and calls and queries regarding the format of the survey. Many are confused about the eligibility to report, the information needed, and the format.

Kay commented that “The Form is a substantial undertaking as the Commerce Department’s own estimate the complete the form is an average of 144 hours per response, including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.” 

“Given that in the past those who were required to complete the form would have generally received a specific notification, a more robust industry notification mechanism would be a welcome development. As would some additional explanation as to how all this collected data is used,” she said.