Software company Confluence is teaming up with market infrastructure specialist Fundsquare to work towards a simplified system for transparency reporting under the Alternative Investment Fund Management Directive (AIFMD).
The directive was designed to create a harmonised, EU-wide framework to monitor the risks of alternative investment funds, and brought in new rules applying to their managers.
New rules include a transparency reporting system, meaning that managers must provide an accurate and detailed account of their assets, strategies and transactions, reporting the data to their relevant jurisdictions.
This requires collection of more than 400 data points from internal and third-party systems, and has proven to be a challenge.
Atlassian’s Confluence software provides data management solutions for asset and investment managers, allowing users to consolidate and share data across platforms, while Fundsquare specialises in international market infrastructure, facilitating cross-border fund distribution and establishing relationships between investors and fund managers.
Combining the Confluence Unity NXT AIFMD Transparency Reporting fund administration application with Fundsquare’s cross-border facilities, the partners intend to simplify the process of transparency reporting for all national competent authorities (NCAs) throughout the EU.
By incorporating Fundsquare into the solution, asset managers need only upload files once for them to be disseminated to multiple NCAs in the format required by each to ensure accuracy and timeliness of filings to each regulatory jurisdiction, according to Confluence.
Melvin Jayawardana, European marketing manager at Confluence, said: “As regulatory reporting pressures continue to increase, we view Fundsquare as a resource we can leverage to develop and bring to the market additional regulatory solutions.”
Fundsquare completed its first passporting request under the new directive on 4 March, helping Luxembourg Investment Solutions to advertise fund services in the German market. This is its first permanent collaboration under the directive.
Fundsquare’s chief commercial officer, Olivier Portenseigne, said: “Working with Confluence will considerably increase efficiency for our respective clients.
“We believe a collaborative model with the best providers will make funds servicing easier at a time where coping with regulation is increasingly high up on asset managers’ agendas.”
