Regulatory technology provider Confluence Technologies created a new platform to help private fund firms meet the periodic and shareholder reporting requirements of the SEC’s private funds rule, Private Funds CFO has learned.
Private funds are trying to adapt to more onerous timeline and data challenges caused by the private funds rule, Confluence said. The SEC is looking for complex calculations and information that Confluence aims to provide for private funds with this new platform.
Confluence has done reporting for Form PF, AIFMD and other regulations, as well as shareholder/periodic filings such as annual reports for the private fund industry. But Todd Moyer, president and chief operating officer at Confluence, said it was not available on a single platform until now.
“The private fund rule has been driver for Confluence to create a reporting platform for private funds that brings together capabilities that we were already providing to the private fund space,” Moyer said.
Under the SEC’s private funds rule, private funds are required to prepare a quarterly fund statement within 45 days after the end of each fiscal quarter, which the regulator admits could be costly for firms. Moyer said these statements present a quick turnaround time for funds to gather the data, both structured and unstructured, from different locations and can be very challenging.
To meet the challenge and comply with regulatory requirements, Confluence’s private fund reporting platform will meet these periodic reporting obligations and ensure that annual, interim and quarterly reports are generated from the diverse data sets, offering consistency and efficiency in compliance efforts.
The firm said the platform also includes an AI reconciliation engine, “Rex,” that automates the reconciliation of diverse private fund reports, reducing time to compliance and ensuring consistency in data points across reports. The platform offers advanced performance analytics, eliminating the need for numerous vendors to meet the requirements of this and future regulations.
Moyer said the private funds industry is under additional scrutiny from regulators across the globe, not only with the SEC’s private funds rule, but also in Europe with AIFMD II.