Find out how to tackle the top 3 challenges before the next AIFMD Reporting deadline

With filing deadline challenges constantly in our line of vision, Arkk regularly speaks to clients, regulators and the market to understand the road ahead. Recently we polled over 400 delegates from the AIMA Global Policy & Regulatory Forum conference to gather opinions on regulatory reporting and assess how the role of technology is perceived. With the next AIFMD reporting deadlines approaching, and to help our clients, we’ve outlined the three top concerns and how to overcome them before your next submission.

1. Reduce the risk of human error

With 30% rating human error as the greatest concern regarding reporting, the need for accuracy is more essential than ever. Across the regulatory landscape, confidence in the accuracy of reporting is understandably a common demand. The FCA is looking to spot check EBA returns for inconsistencies, and HMRC is beginning its digital journey to reduce manual data entry for VAT returns.

AIFMD reporting is no different, and with 300+ data points to populate the risk of error when manually entering remains high. Add in multiple jurisdictions calling for country-specific variances and the levels of risk increase. Using templates which link to your existing data sources can significantly improve the accuracy of your reports. Additionally, being able to switch between jurisdictions from within the templates reduces the amount of manual data entry required to file – thus reducing the risk of errors.

2. Strive for consistency

AIFMD Reporting Survey - Challenges and How To Address Them

The Top AIFMD Reporting Challenges from our AIMA Survey

Surprisingly perhaps, when asked what would most improve the regulatory landscape, the answer was not a reduction in the scale of reporting. Instead, over 60% voted for greater consistency in global reporting requirements. For AIFMD, where local regulatory requirements can differ significantly, submitting to multiple jurisdictions with different schemas can be a challenge.

The regulators are considering how to unify their standards, for example by mandating reporting in specific formats such as XML. In the meantime, there are tried and tested ways to tackle this. Ensuring you can check the local regulatory rules – whilst you populate – is essential. This avoids having to wait until populating your entire return to spot errors, and risk losing your data as you return to your previous page to edit.

3. Future-proof reporting

Across Europe, jurisdictions are making their way towards on-demand, digital reporting, with Spain, Norway and Hungary leading the way on the business tax side, and five countries already mandating the use of XML in submitting AIFMD reports. As global standards start to converge, it’s likely the market will see more jurisdictions take this direction, with the era of typing data manually into online forms in decline.

Deploying technology which will reduce your data-entry time and improve accuracy should certainly be a key consideration, but future-proofing your entire regulatory requirements portfolio is an even more significant step towards simplifying reporting long-term. Bolster this by ensuring you have access to regulatory experts who are in constant contact with local regulators and ESMA to decipher new requirements and update you on the latest taxonomy.

Got any questions about your AIFMD reporting? Get in touch with the Arkk team today.

 

 

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