BNP Paribas unveils Annex IV reporting service

Fund Administration
23 Oct, 2014

BNP Paribas Securities Services has launched an outsourced reporting service for firms filing their Annex IV under the Alternative Investment Fund Managers Directive (AIFMD).

Annex IV reporting is time-consuming and obligates hedge funds, private equity and real estate funds to fill in more than 300 data points and submit this data to regulators 30 days after the end of the each quarter.  Funds of funds are permitted to submit the Annex IV 45 days after the end of each quarter.

Reporting frequency for Annex IV is determined by assets under management (AuM). Firms running between €500 million and €1 billion are expected to file Annex IV on a semi-annual basis, while managers in excess of €1 billion must submit the report quarterly. Those managing between €100 million and €500 million must file annually.

“Annex IV applies to both the manager and the funds it manages. The first section in Annex IV is aimed at the AIFM and that is to obtain information about the manager and will include consolidated data and information about the funds it manages. The second section is aimed at each AIF which the AIFM manages. This is very detailed and firms’ answers could easily run into hundreds of pages if they manage a large number of funds,” said John Vaughan, head of product, fund administration and middle office outsourcing at BNP Paribas Securities Services in Luxembourg.

Filing the form in-house is a challenge and costly, while outsourcing to an external vendor can save time and expenses. “The reports must be delivered on time and in the correct format. This entails collecting, classifying and validating data from multiple sources and performing complex calculations. It is a demanding process for which we have developed a solution which will help ease the burden for our clients and allow them to focus their effort on the strategic management of their funds,” commented Vaughan.

First-time Annex IV filers must submit the report by October 31, 2015. For those firms that obtained regulatory authorisation by July 22, 2014, the first filing will occur on January 31, 2015.

BNP Paribas has also published a guide – “The AIFMD reporting Challenge – a practical guide to meeting Annex IV requirements”, in conjunction with IT platform provider Arcada. The guide provides an overview of the reporting obligations and outlines the information which local regulators across the EU expect to see.

COOConnect will shortly be publishing a Guide to Regulatory Reporting including an in-depth interview with John Vaughan of BNP Paribas Securities Services about the state of play with Annex IV. 

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