Annex IV reporting: Langham Hall's take

27th October 2015

Since the summer, Langham Hall has travelled to both Asia and the US to meet GPs who are trying to navigate the AIFMD marketing guidelines. There are a few themes in terms of GP’s approaches to Europe including: 

·         Avoiding Europe completely
·         Relying on reverse solicitation
·         Relying on the private placement regime and
          marketing to a few select countries

The general consensus seems to be increasing discomfort with reverse solicitation and with the number of countries requiring a depositary expanding beyond Denmark and Germany, it is clear the momentum is still towards greater regulation. Even those countries which don’t officially require a depositary are asking if there is one and this is leading US and Asian GPs to consider just aggregating all European investors into feeder structures on the basis that all European countries are benefiting from having a depositary and can therefore all bear the costs. 
 
Annex IV
 
It is still our view that the majority of GPs are relying on the Private Placement Regime and perhaps registering with three or four countries. However, with all the regulatory reporting now undertaken internally by often quite senior people within GPs, Annex IV is proving quite tiresome to complete, especially as each country has its own version. Senior people are often grappling with regulators’ systems such as Gabriel in the UK and find that they are not able to save down the static information into a spreadsheet to use next quarter because the fields are still changing quarter on quarter.
 
If this applies to you, the solution is not necessarily expensive and does lend itself to outsourcing on a standalone basis. Holding the static information in a system allows a large part of annex IV reporting to be automatically uploaded into excel to allow the dynamic data to be added and then converted to XML for upload into the regulators’ systems. Trying to do this on a periodic basis for one or two funds though without a system can be more difficult and as ever it is not this in isolation but a combination of the current required regulatory reporting that is proving difficult to manage. 

If you need further information, please contact:

Marie Fitzpatrick

Business Development Director
T: + 44 20 3597 7909