Alternative Investment Fund Managers Directive (AIFMD)
The new regulatory landscape for alternative investment fund managers
AxiomSL’s Alternative Investment Fund Managers Directive (AIFMD) solution provides all of the data loading, transformation, aggregation and reporting functionality needed to comply with the requirements of the European Securities and Markets Authority (ESMA) and local regulators. The solution can be delivered on site or as a managed service, and gives users the ability to drill down from reports to source data.
AxiomSL’s ‘one strategic platform’ model means the same architecture can also be used for all other regulatory requirements, greatly reducing the cost and complexity of compliance.
The requirements and challenges
AIFMD significantly increases scrutiny of alternative investment fund managers (AIFMs) operating in Europe by requiring them to report on a variety of topics, including leverage, risk and liquidity, and to change the operational procedures that feed into these reports.
AIFMD reporting requirements are particularly onerous because they involve AIFMs aggregating data from a number of internal and external sources, such as central administrators, portfolio managers and management companies, which are all separate legal entities. AIFMD reporting solutions must use this data to run calculations prescribed by the regulator. They should give users the ability to review the outputs of the calculations and transformations of ESMA’s classifications before reporting the more 300 mandatory data points.
AIFMD also raises governance challenges. The directive’s reporting requirements demand an operational model that defines different tasks and assigns them to individual process and data owners.
AxiomSL’s solution: From siloed data to submitted reports
AxiomSL’s AIFMD solution identifies, captures and integrates data from an AIFM’s internal systems and from third parties. It validates the aggregated data before using it to perform the calculations and transformations required by the regulator and then populating the reporting templates.
A dynamic dashboard gives users a complete overview of the process of scoping their reporting requirements, loading their data, running the required calculations, completing the reports, generating XML files and submitting them to the regulator. Multi-level sign-off controls enable managers to review reports before they are submitted to the regulator. If a user has a query about an individual value, the unparalleled level of transparency offered by AxiomSL means they can drill down to the source data.
The AIFMD solution is a fully controlled environment that allows administrators to assign different roles and levels of access to individual users. This helps AIFMs and reporting officers manage the data governance and internal segregation challenges presented by the directive.
AxiomSL’s solution can be delivered on site or as a managed service, and enables fund managers to easily adapt to evolving and new regulations. As the majority of the features of the solution are standardized, it can be implemented quickly. AxiomSL continually monitors changes to reporting templates and the submission formats used in different countries to ensure clients always remain compliant.
As well as AIFMD, AxiomSL’s platform can be used for all other major regulatory requirements globally. This ‘one platform’ approach helps market participants control costs and ensure consistency across the reports they send to different regulators.
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