ESMA Releases Analysis of AIFMD Annex IV Reporting

April 24, 2018

The European Securities and Markets Authority (“ESMA”) on April 4, 2018 issued its first analysis based on the Alternative Investment Fund Managers' Directive (“AIFMD”) Annex IV reporting requirements. For the last few years, firms have been subject to reporting Annex IV to individual or multiple jurisdictions in the EEA. This first analysis highlights three major points:

  1. As expected, individual jurisdictions are providing Annex IV data to ESMA;
  2. ESMA has built out a large data warehouse to perform analysis; and
  3. ESMA will utilize the first analysis of the structure and main risks stemming from the AIF market to "build an operational framework for monitoring risks in the AIFM sector."

According to the report, "not all of the data reports showed an adequate level of quality." In addition, ESMA confirms that it is working continuously with National Competent Authorities to improve the coverage and quality of the AIFMD data.

Some of the key highlights of their findings include:

  1. Portfolios of AIFs classified under the type “other” represent two-thirds of the total assets managed by AIFMs;
  2. Fixed income AIFs hold the largest share in terms of NAV; and
  3. AIFs rely heavily on reverse repurchase agreements for their funding.

While previously there has been some doubt as to whether and when the European regulators would start analyzing AIFMD Annex IV data meaningfully and if this would follow some sort of "shock" event, it is now clear that ESMA intends to adopt a routine program of review and will "continue to develop descriptive market statistics, trend indicators, and risk metrics on an EU-wide basis to support NCAs supervisory activities and inform policy-making processes." The full report is available here.

ACA Guidance

AIFMs (EU and non-EU) of all sizes should ensure their firms have accurately filed their Annex IV within the mandated deadlines and to the relevant jurisdictions. Filing Annex IV is often a time-intensive process that requires an adviser to gather data from multiple sources across its firm and service providers, such as fund administrators, to which the signatory may not have direct access.

How ACA Can Help

ACA Compliance Group offers regulatory compliance consulting and technology solutions for reporting, filing, tracking, and managing AIFMD compliance activities, which help ensure that your firm stays on top of all regulatory reporting deadlines. Our solutions include:

  • ACA Regulatory Reporting platform (ACA RR) —  ACA RR is the industry-leading platform for aggregating, reviewing, and submitting regulatory filings including Form PF, Form 13F, AIFMD Annex IV, and CPO-PQR. Coupled with support from ACA’s experienced regulatory compliance team, ACA RR has been successfully used by firms of all sizes to more efficiently meet their regulatory reporting obligations while reducing risk and adhering to industry best practices. Learn More or Request a Demo
  • AIFMD consulting and filing services — ACA Compliance (Europe)’s team of experienced regulatory compliance professionals can assist registered AIFMs with the completion and submission of Annex IV. Learn More

Additional Resources

  • How ACA Can Help with AIFMDRead more
  • What's New in ACA RR 5.0 — The latest version of ACA RR includes a redesigned user interface and centralized dashboard. Learn more
  • 2018 Compliance Calendar — ACA has compiled a calendar containing all regulatory reporting deadlines for 2018. Request the calendar

Additional Resources

  • How ACA Can Help with AIFMDRead more
  • What's New in ACA RR 5.0 — The latest version of ACA RR includes a redesigned user interface and centralized dashboard. Learn more
  • 2018 Compliance Calendar — ACA has compiled a calendar containing all regulatory reporting deadlines for 2018. Request the calendar