ConceptONE Announces AIFMD Solution

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ConceptONE, LLC announces the expansion of services to include coverage of the European Union’s (EU) newly clarified Alternative Investment Fund Management Directive (AIFMD) reporting protocols

ConceptONE, LLC, an industry leading provider of risk analytics, data management and regulatory reporting solutions to the money management industry is pleased to announce the expansion of services to include coverage of the European Union’s (EU) newly clarified Alternative Investment Fund Management Directive (AIFMD) reporting protocols. This new service is a logical extension of the firm’s efforts to support similar reporting mandates already in place in the United States, including the Securities and Exchange Commission’s (SEC) Form PF, and the Commodity Futures Trading Commission’s (CFTC) CPOPQR initiative. ConceptONE, having facilitated the successful completion of dozens of these filings, believes it is in a unique position to assist money management enterprises in the task of meeting the nuanced and comprehensive reporting requirements newly finalized by the EU.

AIFMD reporting bears many similarities to US reporting mandates described above, but the requirements are far from identical. The financial asset holding thresholds are of similar magnitude across these jurisdictions, and the frequency of reporting is the same, but unlike the US, where only the largest category of alternative money managers must report granular details as to holdings, exposures, liquidity, funding sources and uses, and counterparty information, all enterprises defined as Alternative Investment Fund Managers (AIFMs) must include these data elements in their AIFMD submissions. Moreover, whereas the content for US reporting allows for some choice as to how certain measures are calculated, AIFMD specifies precisely how each element of the report should be populated from a formulaic perspective.

The deadline for the first AIFMD reporting cycle is July of 2013, and all alternative investment management enterprises whose investor base exceeds the specified thresholds (€100M for annual filers; €1B for quarterly filers), or who wish to market their products in the EU are required to file by this deadline. Moreover, the Directive specifies that enterprises domiciled in the EU (EU-AIFMs, designated by the Directive as enterprises headquartered inside the Euro-zone, as opposed to those that operate outside the EU, but that retain or seek to raise European capital, and are, for the purposes of the Directive, deemed non-EU AIFMs), the Directive further mandates an extensive set of operational requirements, including independent risk control and valuation processes, robust counterparty arrangements, enhanced protocols for investor reporting, and myriad other requirements – all of which are likely to be rigorously enforced – both by individual European jurisdictions and by the EU as whole.

While many of the specific details of AIFMD enforcement will unfold over the coming months and quarters, the reporting requirements are now firmly fixed. It is a matter of near-certainty that the Directive will impose yet another substantial reporting burden on nearly all established alternative investment firms, for which the introductory deadline is fast-approaching. ConceptONE has anticipated these developments, and has built its regulatory and risk reporting offerings in such a way as to ensure the fluid integration of AIFMD into operational workflows, including, but not limited to, US regulatory reporting. The firm believes it has an optimized, holistic solution, which addresses all of the myriad set of reporting challenges confronting alternative investment managers which, in its judgment, are likely to grow over time, as investors and regulators seek greater transparency and firmer assurances of soundness of operation.

“Our AIMFD solution simply builds upon a process that began with our suite of enterprise risk reporting, and expanded to meet regulatory reporting requirements that we have incorporated as they have evolved” said ConceptONE’s Chairman and Chief Risk Officer, Ken Grant. “This is a very important point to us, because if anything can clearly be inferred from reporting trends, it’s that consistency of reporting to various audiences is vital. For these and other reasons, we’ve built our AIMFD solution in such a way as to ensure that it produces consistent output with US regulatory, investor and internal reporting. We believe that regulators and investors will react very negatively to inconsistencies of output across these reporting verticals” he added.

“Most funds are at the moment very focused upon Form PF reporting, which is entirely appropriate given that a large portion of the industry, including private equity, funds and fund of fund enterprises and smaller funds will face their first U.S. reporting cycles in either early March or late April. Fund managers who are not addressing these issues assertively may be placing avoidable difficulties upon themselves” said ConceptONE CEO Mike Rosen. “But our experience and analysis strongly suggests that ALL of these enterprises need to start looking at, planning for and working on AIFMD immediately or in the very near future”.

“Our systems and processes are designed to remove enormous resource allocation and financial burdens from our clients. We stand ready to work with those impacted to attack these challenges efficiently, comprehensively and in a cost-efficient manner” said Grant in conclusion. “We look forward to the opportunity to share our thoughts on the implications of AIFMD, and the entire regulatory/investor reporting landscape with interested parties at their earliest convenience”.

For more information contact:
Dan Connell or Will Livingston
646.840.4950
info (at) conceptonellc (dot) com

About ConceptONE, LLC
ConceptONE, LLC is a unique and quickly growing analytics and reporting enterprise. ConceptONE offers neutral and complete aggregation, analytics, reconciliation, and reporting for a wide range of fiduciary entities. ConceptONE provides end-to-end solutions in data aggregation, risk management, reporting, and advisory. ConceptONE adds an interpretation and advisory layer to the reporting, as well as risk audits and enterprise risk management solutions. Clients can utilize the optional middle and back office services to allow for data acquisition from any source and reconciliation to provide accurate data aggregation and reporting. Reporting services cover real-time, daily, monthly, and annual periods and are delivered via an interactive web portal. Reports cover many facets of portfolio management such as risk, exposure, performance, limit, Value at Risk, stress tests, and other predictive measures. ConceptONE offers complete solutions for regulatory filings (Form PF, CPO-PQR, AIFMD, ESMA), new transparency reporting standards (OPERA), and can cross purpose data aggregation to ensure consistency in external disclosures. For further information please visit our website, http://www.conceptonellc.com

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Dan Connell
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