Regulatory Reporting for Investment Funds

In recent years, European fund managers have been confronted with a growing range of regulatory reporting requirements, both on the local and EU level. These regulatory reporting requirements can focus on the fund manager, their investment fund products or even originate from the need for look-through reporting for institutional investors.

Additionally, there is a growing emphasis on ESG (Environmental, Social, and Governance) criteria among European regulators and institutional investors. This shift has been amplified by the EU’s new Sustainable Finance Regulatory Framework (SFDR), which places ESG reporting at the forefront for all financial market participants.

The fast-moving regulatory landscape steadily increases in complexity, while reporting turnaround times become shorter, leading to growing challenges for fund managers of all sizes.

KPMG in Cyprus has an experienced Regulatory Fund Reporting team that offers a range of regulatory reporting services for Cyprus and international clients. Based on this, it assists fund managers with the ongoing creation of reports as a managed service and advises on regulatory reporting-related questions.

Some of the key reports KPMG offers as a managed services are:

• PRIIPs Reporting: In relation to PRIIPs KPMG can assist you based on your needs. This includes the drafting of the PRIIPs Key Information Documents (KID) for retail and semi-professional investors of sub funds. KPMG can also assist in the calculation of transaction costs, the performance scenario calculation and the determination of the PRIIPs Summary Risk Indicator (SRI).
• AIFMD Annex IV reporting: KPMG can assist with the preparation of the ongoing Annex IV reporting for Alternative Investment fund managers. This includes the preparation of the formatted reports for the different EU jurisdictions. 
• SFDR: KPMG helps asset managers and investors to comply with the EU's sustainable finance framework by producing and distributing the European ESG Template (EET), compiling the Sustainable Finance Disclosure Regulation (SFDR) annex for annual reports, websites and prospectuses, calculating Principal Adverse Impact (PAI) indicators and providing fund managers with a PAI management report.
• Solvency II: Solvency II reporting allows European insurers to determine Solvency Capital Requirements (SCR). The common standard here is the TPT template, which KPMG offers alongside other possible reporting formats. In addition, KPMG provides an overview of the SCR figures in a Solvency II Fact Sheet.
• CRR Reporting: European institutions falling under the Capital Requirements Regulation (CRR) that invest in investment funds require, for their own quarterly risk reporting, several key risk figures. These include, e.g., the average credit risk weight of the fund, the CVA charge from OTC derivatives, the foreign currency exposure, as well as a credit exposure breakdown for the determination of the countercyclical risk buffer. KPMG can provide the required reports either in the form of its own templates or custom investor templates.

With access to robust data sources and extensive expertise in investor reporting, we are able to deliver high-quality reports tailored to our clients’ needs. Our automated report generation process ensures both cost efficiency and quick delivery, while remaining adaptable to various data formats.

Thanks to our deep understanding of evolving regulatory demands, our reports consistently reflect the latest requirements. Beyond reporting, we also offer clients ongoing support by sharing our regulatory expertise to address any additional compliance-related questions.

KPMG in Cyprus collaborates  for its fund reporting services with the KPMG Regulatory Fund Reporting team from KPMG AG Wirtschaftsprüfungsgesellschaft in Frankfurt. Further details on the services the two teams jointly offer can be found here.