By Chris Kentouris
Editor
AIFMD Annex IV Reporting: Risk Scrutiny on Deadline
The Alternative Investment Fund Manager Directive Annex IV.
The long phrase describes at least three hundred points of reference data and other risk metrics alternative fund managers must provide regulators if they want to grab a “passport” to market their funds across European borders.
That passport allows them to operate by a single set of rules, rather than accommodate the discrepancies of onerous private placement requirements in each market or risk reverse-solicitation sanctions. All alternative fund managers have to do is register with a single local regulatory body, which will offer them a green light to sell in other European countries. As is the case with sister regulation UCITS for traditional investment fund managers, Ireland and Luxembourg remain the most common European fund domiciles and markets to register.
That’s the good news. The bad news: Annex IV is about so much more than just about finding the right data that is conjures headaches and heartaches for those fund managers scrambling to complete and submit their first report to a national European regulator by the end of January 2015, or looking at their next Annex IV reporting hurdle.
As with other regulatory reporting requirements, some fund managers are attempting to outsource the work to fund administrators and other third parties, hoping they will be able to do a far better job than they can in-house. In fact, at this late date they are counting on it.
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