In this article, we will explore regulatory reporting under Article 24 of the AIFMD and the requirements to submit returns to the relevant member state regulators.
Annex IV returns
Article 24 of the AIFMD outlines the reporting obligations that AIFMs must comply with on an ongoing periodic basis, in accordance with the reporting template set out in Annex IV of the AIFMD. Consequently, periodic AIFMD reporting to regulators is commonly referred to as "Annex IV" reporting.
Annex IV reporting is an AIFMD requirement to report statistical information to local regulators in each country where AIFMs market their funds. It is similar to the requirement for Form PF reporting in the US. The return is submitted by the AIFM on behalf of the AIFs being marketed, and a further consolidated return is required for the AIFM itself.
The reporting includes details about the underlying instruments traded, investment strategies, geographical and investor focus, and other relevant details. The return consists of a series of questions (over 300) through which data is submitted.
The process can be complex and varies by jurisdiction and fund type. The regulator in each jurisdiction generally maintains an online portal for submitting returns, although some jurisdictions still require submissions via email. The format of the return (generally XML) and the style of portal submission differ slightly in each jurisdiction. At Apex Group, we have a team dedicated to assisting clients with the submission of Annex IV returns throughout the EU (and the UK), which can alleviate the stress for US managers trying to navigate submission requirements.
A report is required in each jurisdiction where a fund is registered for marketing, which can increase the regulatory reporting burden for non-EU managers that have registered a fund in multiple jurisdictions. For example, if an AIF managed by a non-EU AIFM (such as a US manager) is registered to market under the national private placement rules in five jurisdictions throughout the EU—e.g., Luxembourg, Germany, Sweden, the Netherlands, and Ireland—the AIFM will be required to file separate Annex IV returns in each of these five jurisdictions. An Annex IV return is required for both the AIF and the AIFM in each jurisdiction.
The AIFM may need to submit Annex IV returns annually, semi-annually, or quarterly.
The frequency of filing Annex IV returns depends on the size of the AIF, the investment strategy of the AIF, and whether it deploys leverage. Providing the AIF meets the requirements set out by the AIFMD, private equity AIFs are often only required to submit Annex IV returns once per annum.
Reports must be submitted to each regulator 30 days after the end of the reporting period—for example, by the end of January 2025 for the period ending December 31, 2024.
Should you have any questions on this or wish to receive further information on Annex IV reporting, please do not hesitate to reach out.
How can we help?
Our team is currently working with Paul Hastings to assist with marketing inquiries into the EU and the UK. Zach Milloy, a partner at Paul Hastings, can assist with the registration requirements. Once registration is complete, Apex Group can help with the ongoing Annex IV reporting requirements.
For further information, get in touch with our AIFMD reporting team.
