Recommendations reduce duplication, improve data quality, and support capital markets growth
Brussels, Belgium – MFA made recommendations to the European Securities and Markets Authority (ESMA) on ways to simplify and harmonise EU reporting frameworks in two letters submitted last Friday. The letters respond to ESMA’s separate consultations on financial transaction reporting and the integrated collection of funds data.
“Simplified reporting regimes are an important step toward strengthening EU capital markets and advancing the goals of the Savings and Investments Union,” said Jillien Flores, MFA Chief Advocacy Officer. “MFA’s recommendations will reduce costs for investors, improve data quality for regulators, and make the EU a more attractive place to invest. We look forward to working with ESMA on reporting frameworks that enable regulatory oversight while supporting growth.”
Simplified reporting frameworks would reduce compliance costs, eliminate duplicative obligations, and improve data quality. It would also make the EU more attractive for investment and strengthen the competitiveness of its capital markets.
In its letters, MFA recommends that ESMA:
On transaction reporting:
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Eliminate dual-sided reporting obligations and adopt a “report once” model.
- Create a centralised EU data hub for transaction reporting.
- Coordinate with international regulators to avoid divergence and improve global alignment.
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Assign reporting obligations to trading venues and clearing houses where possible.
On funds reporting:
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Streamline fund reporting under the Alternative Investment Fund Managers Directive (AIFMD), Undertakings for Collective Investment in Transferable Securities (UCITS), Money Market Fund Regulation (MMFR), and European Central Bank (ECB) statistical regimes.
- Reuse data across frameworks to reduce duplication and improve consistency.
- Develop an EU-wide data dictionary to align definitions and reduce interpretation risk.
- Maintain the current tiered reporting frequency model and avoid monthly or daily reporting.
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Create a centralised EU reporting portal for fund data submissions.
Read the full letter on financial transaction reporting here.
Read the full letter on the integrated collection of fund data here.
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
