EU markets regulator the European Securities and Markets Authority (ESMA) is planning to reduce the compliance costs and complexity for hedge funds and private credit firms under new EU reporting rules, according to a report by Bloomberg.
The report cites ESMA chair Verena Ross as saying in an interview that proposals will be published in April aimed at simplifying reporting requirements, largely through better coordination between national authorities.
The measures respond to concerns that the expansion of private credit and alternative investment funds has increased regulatory reporting obligations, with more than 100 templates currently in use across Europe. The revisions to AIFMD rules will focus on providing regulators with actionable insight on liquidity, leverage, and holdings, without forcing firms to submit commercially sensitive data.
Industry bodies, including AIMA, have welcomed the initiative, noting that a targeted reporting framework could improve systemic risk monitoring while reducing unnecessary operational burden for fund managers.
