Are you ready for AIFMD filings?
With the second round of AIFMD filings approaching, Fund Managers need to ensure that their Annex IV returns are filed accurately and on time to avoid resubmissions. Last year’s filings were not without their share of problems, with challenges ranging from unclear technical standards to templates with over 300 data points to populate.
Fortunately at Arkk we’ve broken down the biggest challenges the market is currently facing with AIFMD - and exactly how to solve them.
Challenge 1 – Submitting data in XML
Fund Managers reporting in the EU may be required to submit data in XML, a reporting language which makes data easier for a computer to analyse. Unfortunately it is completely un-readable for humans, so the populated templates must be converted into this format. Even though Fund Managers who report to the FCA have the option of using the online form, converting a spreadsheet into XML is a far less time-consuming process than re-keying data.
Solution: A robust conversion tool is absolutely essential for generating compliance submissions. Transform Excel spreadsheets into compliant XML at the click of a button for a hassle-free filing.
Challenge 2 – Submitting to multiple jurisdictions
Various jurisdictions have different requirements for Annex IV. Understanding different technical requirements for the Competent Authorities of EU jurisdictions is a challenge itself, let alone physically making the alterations at data point level.
Solution: This is a heavy task to undertake alone, so seeking expert advice is the best way to overcome this and ensure that your Annex IV submissions are filed on time to multiple jurisdictions. The experts can make these changes on your behalf, so you don’t have to re-key the same information into different templates.
Challenge 3 – Preparing data
Up to 302 questions need answering before an Annex IV template is fully populated. As a relatively new reporting requirement, Annex IV is not second nature to most Fund Managers, who already have a busy itinerary for Q4 without having to re-learn the data requirements.
Solution: Whilst Fund Managers may have only filed once or twice in the past, compliance experts will be experienced in filling out templates, fixing validation issues and preparing data for XML conversion. Seeking assistance can save you days of time, and can give you a guarantee of compliance.
Challenge 4 – Fixing technical and regulatory errors
Populating a template with 300 variables isn’t easy. With some filers looking at submitting data for upwards of five funds, this tricky problem becomes a real challenge. Fund Managers want to avoid resubmissions at all costs, which means sending a totally accurate and completely compliant Annex IV return to the FCA and other national competent authorities first time.
Solution: Here a mixture of regulatory and technological expertise is required. Fixing validation errors is a quick task for a compliance expert, and utilising the help of advisors who spend every day examining validation errors will stand you in far better stead than tackling Annex IV alone.
Challenge 5 – Ongoing Changes
With frequent updates from ESMA and changes to Fund Managers’ portfolios, an AIFMD solution must be able to accommodate the ever changing regulatory reporting landscape. Many filers find their solutions too static, and simple tasks of adding and removing can become a challenge.
Solution: Using templates with the ESMA validation rules built in will reveal any problems straight away, and your provider needs to be in constant contact with the regulators to hear the latest updates. A flexible reporting tool is important to ensure that if the parameter of a fund changes, the reporting accurately reflects this with minimal hassle.
With the right tools and advice, Annex IV reporting doesn’t have to be a challenge.
We’re providing Annex IV filing assistance for over 125 Fund Managers across Europe. So whether its bespoke guidance tailored to your funds, filing services to multiple jurisdictions or a robust XML conversion tool with validation rules built-in, we’ve got it covered. To discuss further, just drop us a message.
