How should leverage for AIFM be reported?
Pursuant to Article 6(1) of EU Commission Delegated Regulation (EU) No. 231/2013, leverage shall be expressed as the ratio between the exposure of an AIF and its net asset value.
Pursuant to Articles 7 and 8 of the Delegated Regulation, the exposure shall correspond to the sum of the absolute values of all positions. For example, if the exposure is EUR 2 billion and NAV is EUR 1 billion, the calculation would be (2 billion/1 billion)*100. The result is 200% and this is the figure that shall be reported.
If the fund does not have any leverage, 100% shall be reported.
Which companies must report?
The reporting requirements for authorised AIF managers and for AIF managers with authorisation to market an alternative investment fund in Sweden are set out in Chapter 13, sections 2-4 of the Alternative Investment Funds Act (2013:561). The requirements derive from Article 24(1)-(2) and (4) of Directive 2011/61/EU of the European Parliament and of the Council.
The reporting requirement for registered managers is set out in Chapter 2, section 4 of the Alternative Investment Funds Act. The requirement derives from Article 3(3)(d) of Directive 2011/61/EU of the European Parliament and of the Council.
What information must be reported?
What should be reported and at what time is set out in Articles 110-111 in Commission Delegated Regulation (EU) No. 231/2013. Information shall be reported for the AIF manager and for each fond. Reporting templates are available in Annex IV of the Regulation.
The Annex is an Excel document consisting of four sheets that are named after Articles 24(1), 24(2) and 24(4) in the Directive. The first sheet – AIFM file 24(1) – refers to reporting for AIF managers. The three other files, AIF file 24(1), (2) and (4), refer to reporting for the funds.
The document is available on ESMA's website and is called the Consolidated AIFMD Reporting Template.
Authorised AIF managers and non-EEA-based AIF managers with authorisation to market an alternative investment fund in Sweden in accordance with Chapter 5, section 10 of the Alternative Investment Funds Act shall use templates 24(1) and 24(2) for their report. If any of the funds use significant financial leverage, they should also be reported using template 24(4).
Registered managers shall report information using template 24(1).
How often should reporting occur?
A diagram of AIF managers' reporting obligations is available in Annex 1 of ESMA's guidelines regarding reporting:
Guidelines on reporting obligations under Articles 3(3)(d) and 24(1), (2) and (4) of the AIFMD
Authorised AIF managers and non-EEA-based AIF managers with authorisation to market an alternative investment fund in Sweden shall primarily report using intervals determined by the managed assets' size.
|> EUR 1 billion
|< EUR 1 billion
|> EUR 500 million
AIF managers that are unleveraged and which invest in unlisted companies and issuers in order to acquire control shall report on an annual basis.
Authorised AIF managers of alternative investment funds that may market to retail and non-UCITS firms whose managed assets are less than the thresholds set out in Chapter 2, section 2 of the Alternative Investment Fund Act shall report on a bi-annual basis. This is also specified in Chapter 16, section 8 of Finansinspektionen's regulations (FFFS 2013:10).
AIF managers with authorisation to market an alternative investment fund in Sweden pursuant to Chapter 5, section 10 of the Alternative Investment Fund Act whose managed assets are less than the threshold shall report on an annual basis.
Registered AIF managers shall report annually.
When is the company's first reporting occasion?
The company's first reporting occasion occurs one calendar quarter from the date the manager or the alternative investment fund received authorisation from FI up to the balance sheet date to which the reporting applies.
When must the report be submitted?
The report must be submitted one month after the end of the period. If the manager manages a fund of fund, the report must be submitted no later than after an extension of 15 days, both for the fund and for the manager. If the same manager manages funds that are not fund of fund, these must be reported no later than one month after the end of the period. See Reporting Calendar Swedish Fund Management Companies.
How to report
The report is submitted in an XML file via the online reporting system, Periodic Reporting. This report does not have a graphic interface; it is done exclusively using an XML file. The XML file shall follow ESMA's specifications. Example files and instructions are available in the document AIFMD Reporting IT Technical Guidance on ESMA's website.
When reporting in SEK, the values are stated as whole numbers. When the XML file is appended to the report, the report shall be submitted to FI.
Templates for the report, as previously mentioned, are provided in the ESMA document Consolidated AIFMD Reporting Template.
What does "national code" mean?
The national code shall be entered in the reporting file. This corresponds to FI's institution number for AIF managers and AIFs. The institution number can be found in FI's Company Register.
When is the report approved?
FI validates all reports. Once the report is validated, an email is sent to the specified contact person to inform them that there is a validation result in the reporting system under the Messages tab. If validation has not been approved, the report must be corrected and resubmitted. Once the report is validated without errors, it is complete.
How do I gain access to the reporting system?
Previous access to periodic reporting is still valid in this system. New access is ordered by submitting an authorisation form.
Do AIF managers have to submit additional reporting?
Managers of alternative investment funds that may be marketed to retail and non-UCITS firms must submit a quarterly report for the manager every quarter. Such a report shall be submitted irrespective of the size of managed assets. This is set out in Chapter 16, sections 2 and 7 of FFFS 2013:10.
Managers of non-UCITS shall submit a report for each non-UCITS fund every quarter pursuant to Chapter 16, section 4 of FFFS 2013:10. Section 4 specifies the information that must be included in the report.
We have received a validation error, what should we do?
Start by troubleshooting in ESMA's example files and instructions that are available here:
ESMA's example files and instructions
How long will the quality review take?
For firms whose data will be reported on to ESMA, it is our goal to review the information within two weeks. The validation process for other firms may take more than two weeks, but it also could take less. We review the reported data on an ongoing basis, but the amount of time this step will take varies depending on the type of deviations we find, the measures we have to take, the persons at FI who will assess the deviation, etc.
Are there any limitations on when revisions can be made?
No, the reporting system allows for revisions of older reports. One prerequisite for a revision to be approved is that it may not violate a validation rule. FI encourages firms to revise previously reported information without undue delay if there has been a change. The firm's information should therefore agree with the information that has been reported to FI.
What does the phrase "well in advance" entail?
Reporting under the regulation entails that a number of validation rules must be met before the report can be submitted. In order to minimise the risk that a situation would arise close to the reporting date in which validation problems stop the report, we consider it to be an advantage to start the process well in advance. An in-house validation processor makes it possible to perform a validation and thus avoid the report not passing established controls. Please note that a submitted report is not considered to be submitted until you have received a confirmation email in return, and that your reporting tool has received a message that the report has been approved.