The European Securities and Markets Authority (ESMA) has published final guidelines on the reporting obligations for alternative investment fund managers (AIFMs) under the AIFM Directive (AIFMD). The guidelines require AIFMs (which
includes hedge funds, private equity and real estate funds) to report certain
information to national supervisors on a regular basis, including information
on an alternative investment fund’s (AIF) investment strategies, turnover and
the total value of assets.
The reporting template is set out in Annex IV and includes the detailed
reporting requirements (Annex II sets out the tables of enumerated reporting
fields' values). ESMA is of the view that there is a need to supplement the regulation with further guidelines on reporting obligations. In particular that the format of the report sent to national competent authorities should be standardised to facilitate
the exchange of information between them.
ESMA has also published an opinion that proposes introducing additional periodic reporting including information on value at risk alternative investment funds and the number of transactions carried out using high frequency algorithmic trading techniques.
The guidelines will be translated into the official languages of the EU.
National competent authorities will then have two months from the date of
publication to confirm to ESMA whether they comply or intend to comply with the
guidelines by incorporating them into their supervisory practices.