No need to visit a fortune-teller: fund reporting requirements will grow. For alternative investment funds, this year only there are three more reporting dates still to come. It’s high time you got ready to face them. In the coming years reporting requirements are bound to increase and those already implemented are bound to change. Fund managers have no choice but to comply, meaning that operational setup will consume a lot of time, resources and result in higher costs. Investment fund managers must therefore carefully consider how they will implement regulatory reporting requirements, and approach this constant change with a more long term and strategic mind-set. AIFMD reporting requires data feeds from many data sources within the investment fund’s eco system.
- The industry as a whole needs to improve data management: from what data is captured and how, to the way it is organised and maintained.
- Data management process is often not applied consistently from the initial data entry to its output. Consequently, data may fit well for some uses, but not for others.
- Data capture at the source is often disconnected from output requirements, and how the data will be used for from a regulatory reporting perspective.
- Most have struggled with the data needed for the AIFMD transparency reporting. This often stems from the fact that data is either missing, not considered as important in the past, or that the necessary codification to connect data coming from different data providers is not in order.
- All have struggled with the multiplicity of sources of the data required for the AIFMD transparency reporting. In all cases, the data needed to gather for the reports is not available in one location.
By Lee Godfrey