AIMA responds to European Commission fitness check on supervisory reporting

Published: 27 February 2018

On 27 February 2018, AIMA responded to the European Commission’s Consultation Document ‘Fitness Check on Supervisory Reporting.’ AIMA submitted a high-level response, raising three key areas of concern on behalf of members, for the Commission to consider as part of the Fitness Check, specifically:

  • European Market Infrastructure Regulation (EMIR) – We have recommended that the Commission amend EMIR to provide for a single-sided reporting mechanism, to address a number of operational issues experienced by members. We have highlighted that the associated costs on the industry of two-sided reporting are disproportionate, particularly in light of ongoing significant issues surrounding the reporting, which have meant that dual reports have not improved, and have perhaps reduced, the quality of supervisory data available to EU regulators.
  • Short-Selling Regulation (SSR) – We have encouraged the Commission to remove barriers to an efficient SSR reporting mechanism by working with the competent authorities and European Securities and Markets Authority (ESMA). We have also supported the development of a single reporting platform for all net short position disclosures, to reduce the costs and operational burdens associated with high frequency notifications through a disparate range of communication methods and formats adopted by competent authorities. We have urged the Commission to amend the regime to ensure that the relevant data to make accurate net short position reports is made available to market participants. 
  • Alternative Investment Fund Managers Directive (AIFMD) Annex IV reporting – AIMA has asked the Commission to drive improvements to reporting requirements under AIFMD, to achieve consistency in the interpretation of certain requirements across Member States, and provide greater transparency on how competent authorities are using the data, considering the time and effort being taken by firms to complete the data. In particular, we expressed that our members would welcome a comprehensive common reporting methodology, instructions and interpretations, and the development of a single portal for submitting reports.

The consultation period has been extended from to 14 March 2018 (originally due to close on 28 February) and we encourage members to also respond directly to the European Commission’s specific requests for opinions and data in the Fitness Check. As a reminder, the consultation is focused on gathering evidence on the cost of compliance with EU supervisory reporting requirements in force by the end of 2016. If members have any questions, please contact Adele Rentsch or Adam Jacobs-Dean.