UK GPs don’t know their AIFMD reporting obligations

Nearly half of UK fund managers are unsure of the information required to complete their AIFMD reporting requirements, according to fresh research.

Only half of UK fund managers are fully aware of what information is required and when to submit their Alternative Investment Fund Managers Directive’s (AIFMD) Annex IV reporting, said a recent Moore Stephens survey.

According to the accounting and audit firm’s poll, 42 percent of UK-based fund managers are unsure of the information required by Annex IV and almost 35 percent stated that they were not prepared for the actual reporting process.

The survey puts this down to the lack of guidance provided by the UK’s securities watchdog the Financial Conduct Authority (FCA). However, the regulator has recently provided additional information on technical aspects relevant to the new reports and allowed fund managers a brief window to submit mock returns within a dedicated test environment.

Yet, despite this apparent unpreparedness the survey did suggest that fund managers are still confident in their ability to meet their reporting obligations. A key statistic in the survey was that 88 percent of fund managers were confident in the ability of their systems to cope with the reporting requirements.

Moore Stephens puts this down to many fund managers relying on existing outsourcing arrangements with fund administrators and are therefore confident that appropriate reporting systems will be made available to them.

“We expect that a large percentage of AIFMs may decide to outsource reporting requirements or seek assistance from third party providers,” said Tim West, partner at Moore Stephens, said in a statement.

But West added that even under outsourcing arrangements, it is the fund manager that retains full responsibility and liability for their reporting obligations. “Failure to submit an accurate and complete report could have severe consequences and AIFMs should ensure they have a clear understanding of the information required and clear oversight of the regulatory reporting process.”

For a more detailed analysis of the Annex IV reporting burden be sure to check out pfm’s upcoming February issue.