ESMA Clarifies Reporting Requirements for Alternative Fund Managers

The European Securities and Markets Authority (ESMA) has published final guidelines on the reporting obligations for alternative investment fund managers (AIFMs).

The guidelines, relating to the Alternative Investment Fund Managers Directive (AIFMD), will require AIFMs – which includes hedge funds, private equity and real estate funds – to regularly report certain information to national supervisors.

They also clarify provisions of the AIFMD on required information, which will help to have a more comprehensive and consistent oversight of AIFMs’ activities.  ESMA has also published an opinion that proposes introducing additional periodic reporting including such information as Value-at-Risk (VaR) of AIFs or the number of transactions carried out using high frequency algorithmic trading techniques.

“One of the key objectives of the AIFMD is bringing the alternative fund world under supervision thus providing more transparency to investors and regulators,” said Steven Maijoor, ESMA chair.

“As the AIFMD came into force in July, both AIFMs and national supervisors now need to prepare for their regulatory filings as it is these reports which will enable supervisors to monitor the systemic risks of AIFs. In order to achieve this objective, national supervisors should receive all the necessary information in order to ensure an appropriate overview of the sector.

“Our guidelines and Opinion will help to standardise the reporting across the EU. It will also facilitate the exchange of information between national regulators, ESMA and the European Systemic Risk Board [ESRB].”

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