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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Annex X
6.33 The required frequency of reporting will be set out in the Level 2 Regulation and is likely
to depend on the size and type of funds managed by the AIFM. We expect that the first
reporting deadline will be October 2013 and will apply to certain AIFMs authorised after
22 July 2013, where those AIFMs manage portfolios of AIFs whose assets total more than
€1 billion, or manage an individual AIF whose assets total more than €500m. It will not
apply to AIFMs operating under transitional provisions as set out in Chapter 2.
6.34 In addition, AIFMs must provide the FCA on request with an annual report for each AIF they
manage or market in the EEA and a detailed list each quarter of all the AIFs they manage.
AIFMs employing substantial leverage
6.35 An AIFM managing an AIF that employs leverage on a substantial basis must report
additional information to the FCA on the level and type of leverage used, as well as on the
source of funding for the leverage. We expect the Level 2 Regulation to define the use of
leverage on a ‘substantial’ basis.
Capital reporting by AIFMs
6.36 In addition to reporting information about the AIFs they manage under Article 24, we
intend to require AIFMs to report information for their capital requirements and the
amount of capital they hold. These requirements will be set out in SUP 16 Annex 24R.
They are explained in paragraphs 5.36 to 5.41 on prudential requirements.
Additional reporting
6.37 The reporting rules aim to make it easier for regulators to identify, assess, monitor and
manage systemic risk effectively. The FCA will be given the power to require AIFMs to
report additional information on a ‘periodic’ or ‘ad hoc’ basis where necessary for it to
manage systemic risk. We are currently considering in what circumstances we may require
AIFMs to report additional information to us and will provide an update on this in due
course. In exceptional circumstances, ESMA will have the power to ask the FCA and other
competent authorities to impose additional reporting requirements on AIFMs that must
report under the rules of FUND 3.4.
Operational aspects of reporting
6.38 To comply with FUND 3.7.8R, AIFMs will need to inform the FCA of any changes in the
leverage limits of the AIFs they manage. In DP12/1 we asked respondents for their views on
the best way to report this to us. 55 Responses were mixed, with some favouring a written
notification and others preferring an online platform. We are updating our systems to take
55 Question 16 DP12/1.
46 Financial Services Authority November 2012