AIFMD Complexity in Reporting

  •   27 Jul, 2015  Posted By Gopi P Dhamodaran
  •  Posted in AIFMD
  • Tags:

AIFMD Annex IV reporting data can be classified into:

  1. Static data such as name of the fund house, name of the fund, legal entity code etc.
  2. Calculated data such as Asset under Management (or AuM), geographical focus, concentration of assets, instruments and market concentration.

Complexity in a particular AIFMD reporting is determined by the level of calculations for various reporting fields. Data for calculation has to be obtained from a number of sources such as Position Market Value (or PMV) file, trades file, financial statements, investor statements, risk and exposure report, and liquidity report for fund and portfolio.

Though European Securities and Markets Authority (ESMA) has given a directive for calculations in level 2 regulation as per article 2, specific expertise is needed in applying the regulation and calculating the values for top traded instruments, concentration of assets at various class levels, principal markets where the fund invests or trades, and geographical distribution of its portfolio.

AIFMD reporting, though a step forward in market regulation, is not well received by the fund houses due to the level of complexity and the time constraint involved, which is hampering their core business activity.

It is beneficial for the fund house to outsource the AIFMD reporting to experts and be relieved of the burden of performing the numerous and complex calculations as required by the regulator so that the fund house can optimally use their resources for their core activities.

We, at DataTracks with a team of experts, provide AIFMD preparation service by collecting the raw data from fund houses and applying complex calculations with the help of an automated solution. While fund houses focus on managing the funds, the responsibility of regulatory reporting is taken care of by us.

About DataTracks: DTracks Limited is a subsidiary of DataTracks Services Limited. With more than 10 years track record, DataTracks is a global leader in preparation of financial statements in XBRL and iXBRL formats for filing with regulators. DataTracks prepares more than 12,000 XBRL statements annually for filing with regulators such as SEC in the United States, HMRC in the United Kingdom, Revenue in Ireland, ACRA in Singapore and MCA in India.

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