Customized Risk Management and Analytics solutions for the financial services industry
ConceptONE Announces AIFMD Solution
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.
Garden City | New York | Greenwich | 646.840-4950 | www.conceptonellc.com
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Customized Risk Management and Analytics solutions for the financial services industry
“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@conceptonellc.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
Garden City | New York | Greenwich | 646.840-4950 | www.conceptonellc.com
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