AIFMs demand more regulator feedback

More detailed feedback on the value and use of reported data would help asset managers enhance their internal reporting procedures.

Europe’s regulators should provide asset managers with feedback on the quality of their data reporting, and how it is helping to ensure the security of the financial system, according fund managers speaking at the Association of the Luxembourg Fund Industry conference on Wednesday.

“We support the regulatory framework, but need to know if the data we are providing is fulfilling regulators’ needs, and if there are ways in which we can streamline it to ensure it is useful,” Martin Parks, director at BlackRock, London, told delegates.

He added differences between the reporting requirements for funds and regulators meant it was more difficult to ensure the data was high quality, making feedback essential.

“Automation is limited, as the data set has to be manipulated slightly differently depending on the report being produced. This means it’s more difficult to produce high quality data as it is always being adjusted,” he said.

Paul Carr, chief exeecutive and conducting officer at East Capital Asset Management, said the overlapping reporting requirements should be addressed, not least because they create barriers to entry for some smaller firms.

“We manage a range of funds in a range of asset classes, and do need feedback [from the regulators] as to the value of the data we are sending, and the crisis it is avoiding,” he said.

Panellists agreed that some regulators were better than others at providing feedback on reporting systems. The UK watchdog, the Financial Conduct Authority, was praised for its efforts, while the Europe-wide regulator ESMA was also provided some useful advice, panelists said.

But the International Organisation of Securities Commissions, which has acknowledged shortfalls in its provision of comment to reporting agents, was less helpful, according to some delegates.

“Feedback from regulators would help when producing our own risk reviews, and assist in improving our internal processes,” Parks said.