AIFMD Annex IV reporting is rapidly approaching for alternative investment fund managers (AIFMs) and with that deadline has come a last minute scramble to determine reporting requirements, according to ConceptOne.
The FCA released two documents pertaining to Annex IV reporting for both EU and non-EU AIFMs on 29 September and a related Q&A on 1 October, 2014. The documents seek to clarify questions on report content and timing which are still causing confusion for managers.
Coinciding with the FCA releases, ESMA published its long awaited update to the Questions and Answers, Application of the AIFMD. The update answers a few key questions pertaining to Annex IV, specifically for non-EU AIFMs.
For non-EU AIFMs only marketing feeder funds in the UK, only the feeder needs to be reported on. But, the FCA has advised that larger AIFMs they determine to be "systemically important" will likely be asked for the master fund data at some point.
EU AIFMs will be required to look through the feeders and report on master fund investments whether or not they are marketed in the UK.
ESMA has clarified the methodology for calculating EU AUM for Annex IV reporting:
◦ For purposes of determining the "Threshold" for Annex IV reporting, AIFMs should include assets of all AIFs under management whether EU-based or marketed in the EU;
◦ For purposes of determining the "Frequency" of reporting under Annex IV, non-EU AIFMs should only include the assets of the AIFs that are marketed in the EU and apply that to all Member States.
ESMA has also clarified that reporting obligations to national competent authorities does not depend on the actual marketing period of the AIF but rather the existence of investors in the AIF in the jurisdiction of the authority concerned. AIFMs must continue reporting even after that marketing period of the AIF has ended unless it has no investors in the jurisdiction in question.
The first round of Annex IV reports will be due at the end of October, while most AIFMs will be required to file their first Annex IV at the end of January 2015. The experiences to date of the October filers indicate an early start and robust regulatory enterprise risk management system are critical for timely completion of the Annex IV report.