2016 has seen the additional regulatory burdens of BCBS-239 and Solvency II come into force, and with them additional data management demands, . But previous regulations are still causing problems, such as the Alternative Investment Fund Management Directive (AIFMD) that took effect in 2013.
AIFMD was introduced by the European Union as a result of the 2008 financial crisis and aims to counter credit risk issues that contributed to the crisis by ensuring alternative investment fund managers (AIFMs) have a good understanding of their exposure to counterparties and can demonstrate robust processes for valuing assets under management. The regulation applies not only to AIFMs, particularly hedge funds, but also to the firms that service their funds. While many AIFMs have completed most of the data management work required for AIFMD compliance, challenges remain around sourcing data codes and classifications, scale and transparency, price challenges and reporting in line with Annex IV of the regulation.
To find out more about the data management issues of AIFMD and approaches firms are taking to resolve them read ‘Meeting the Data Challenges of AIFMD’, a recently published A-Team Group White Paper sponsored by Thomson Reuters.
– See more at: Regulation Review