BNP Paribas unveils Annex IV reporting service

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

Annex IV reporting is time-consuming and obligates hedge funds, private equity and real estate funds to fill in more than 300 data points before submitting this data to their relevant regulator 30 days after the end of the each quarter. Funds of funds are permitted to submit their 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 biannual basis, whilst 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," said John Vaughan, head of product, fund administration and middle office outsourcing at BNP Paribas Securities Services in Luxembourg. "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 that 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.”

Filing the form in-house is a challenge and can be costly. Outsourcing to an external vendor can save time and expenses. “The reports must be delivered on time and in the correct format," commented Vaughan. "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.”

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

Tags: Annex IVReportingAIFMDBNP Paribas