BNP Paribas Securities Services has launched an outsourcing service for AIFMD reporting, allowing asset managers to fulfil their reporting obligations without the associated administrative and financial burden.
Under the directive, alternative investment funds including hedge funds, private equity and real estate funds, and funds of funds must report certain information, including exposures and leverage, to national supervisors. The requirements are designed to help regulators monitor systemic risk in the alternative investment fund industry.
John Vaughan, head of product for fund administration, middle office outsourcing at BNP Paribas Securities Services, says: “Depending on the fund manager, the cost of setting up a reporting infrastructure for AIFMD could be in the range of hundreds of thousands to millions of euros.
“The reports must be delivered on time and in the correct format. This entails collecting, classifying and validating data from multiple sources and performing complex calculations. It is a demanding process for which we have developed a solution which will help ease the burden for our clients and allow them to focus their effort on the strategic management of their funds.”
The bank has also published a guide, ‘The AIFMD reporting challenge – a practical guide to meeting Annex IV requirements’ in conjunction with IT platform provider Acarda. The guide explains the reporting obligations in practical terms, including how to classify fund activity correctly and ensure the information provided is precisely what the local regulator requires.
The initial waves of “first time” reporting for fund managers under the directive will take place on 31 October 2014 and 31 January 2015.
