CP12/32: Implementation of the Alternative ... - BVCA admin

November 2012
CP12/32
Implementation of the Alternative Investment Fund Managers Directive
requirements. We also intend to incorporate the reporting template in the Level 2
Regulation in SUP 16.
6.27 In addition, ESMA intends to develop Level 3 guidelines on a more detailed and
harmonised reporting template, which AIFMs can submit to all EU competent authorities.
This will be helpful to those AIFMs operating in more than one Member State. We intend
to transpose this in SUP 16.
6.28 The requirements in FUND 3.4 and SUP 16 will apply to UK-authorised AIFMs for each
EEA AIF they manage and each AIF they market in the EEA. Under the draft Treasury
regulations, non-EEA AIFMs will have to comply with similar requirements for each AIF
they market in the UK.
Current hedge fund data reporting
6.29 We currently collect information on the potential systemic risk posed by hedge funds in our
Hedge Fund Survey (HFS) and Hedge Fund as Counterparty Survey (HFACS). These
surveys are currently voluntary and are conducted on a bi-annual basis. They focus on
market dislocations that disrupt liquidity and/or pricing, and losses in hedge funds, which
may be transmitted to counterparties.
6.30 Some firms currently submitting data as part of these surveys are likely to become AIFMs and
will need to comply with the AIFMD reporting requirements. They will be reporting much of
the same data but the format and some of the details will change. Smaller hedge fund
managers, like all other AIFMs that do not participate in the survey, will see a more significant
change in their reporting obligations under AIFMD. The precise impact of these changes will
become clearer once the Level 2 Regulation and ESMA’s Level 3 guidelines are finalised.
6.31 Since much of the data we ask for in the HFS will need to be reported under the AIFMD,
we do not intend to continue to collect data through the HFS. We will continue to run the
HFACS, on a voluntary basis, as this captures useful information from hedge fund
counterparties that will not need to be reported under the AIFMD.
General reporting requirements
6.32 Our draft rules FUND 3.4.2R and 3.4.4R will require AIFMs to report regularly to the
FCA on:
• the main markets and instruments in which they are trading;
• the principal exposures of each AIF they manage;
• their risk and liquidity management systems; and
• the results of their stress tests.
Financial Services Authority 45