www.pwc.lu/am Institutional investor reporting for investment funds PwC’s integrated bridge to compliance Investment funds have been hit by a wave of reporting requirements from their investors specifically from institutional investors, such as credit institutions, insurance companies and other institutional investors. These investors need detailed information in order to comply with their own reporting requirements. Surfing the wave means today providing a high-level service to institutional investors and getting you ahead of competition. But the present needs are only the first ripples of a major tsunami! Just one example: Solvency II will soon impose reporting needs on ALL insurance company investors and obligate investment funds to deal with no less than 28 reporting templates – one for each member state. Asset managers must quickly decide whether to establish the required competency and delivery capability internally or to opt for an external service provider. Thus, the pressure exercised by the different regulators – be they European regulators or supervisory authorities of the various countries – has indirectly affected the asset management industry. GroMiKV CRR Groß - und Millionenkreditverordnung Quartalsmeldeverordnung EU Regulation 2013/575/EU QMV VAG Versicherungsaufsichtsgesetz Solvency II What we observe in the market In the past, ad-hoc reporting was sufficient to satisfy the specific reporting needs of institutional investors. Now, however, we’re experiencing a growing demand from the various groups of institutional investors for assistance with different reporting duties. Compared to the past, the level of reporting the latter ask for is more demanding since it impacts their own ability to invest. Information meant to ensure investors’ compliance has become an entry barrier for many institutional investors and is now key when making their investment decision. We’re expecting that, based on the changing regulatory environment, these requirements will further increase significantly and providing institutional investors with a broad variety of specific reports will become a standard requirement. For instance, various institutional investors have reviewed many of their investment fund holdings in recent months in light of the introduction of the Capital Requirements Regulation (“CRR”). Under the CRR, specified fund holdings – i.e. investments made by the fund - must be deducted from a bank’s available equity. This means that banks have to consider the transparency of the fund’s portfolio at the end of every quarter. Funds not able to provide this information risk to be sold by investors. Investment funds need to be ready to meet the current and future requests of their investors to remain competitive and attractive. They have to make a strategic decision regarding whether to build up an internal group of specialists to deal with the demand for reporting or whether to outsource this function. Your challenges Regulatory reporting is becoming more and more restrictive, complex and wide in scope, constituting a real challenge for investment funds. Some of these challenges include: • access to trained resources; • language barriers; • tight deadlines; • increasing number of reporting requests and investor queries; • constantly changing legal and regulatory environment and expected changes in the future; • market pressure; • etc. How we can help Our institutional investor reporting service is a bridge to compliance. We’re already providing a broad variety of institutional investors with reports, the scope of which is constantly evolving. We’ve acquired many years of experience in successfully conducting reporting assignments for world-leading asset managers. To ensure the highest quality of service, we’ve set up an experienced team dealing exclusively with institutional investors reporting. Our experts leverage the wealth of knowledge and expertise from the global PwC network to ensure reporting compliance. Thanks to our dedicated IT solution, which is efficient and easy to use, we’re flexible in responding to market demands in terms of reporting. This powerful capacity even allows us to take on new reporting requests within a short period of time. Based on our extensive knowledge, we can deal with any specific questions you might have on how to fulfil your investors’ requests (e.g. VAG reporting, GroMiKV reporting, CRR reporting, QMV reporting, Solvency II reporting, etc.). We support you in making your product more attractive to your institutional investors and letting you focus on your core business by handing over the reporting to us. Administrator • Scope • Portfolios • Balance Sheets • Other information PwC Global • Scope • Portfolios • Balance Sheets • Other information Our services your bridge to compliance Report Report • Scope • Portfolios • Balance Sheets • Other information Financial Services Providers Report Fund Depending on your wishes, we: • advise you on how to prepare the required reports; • compile the reports in question, offering you the possibility to outsource this service; • certify the reporting prepared for the institutional investor; and • train people on the various reporting topics and issues. Why PwC Luxembourg? PwC Luxembourg (www.pwc.lu) is the largest professional services firm in Luxembourg with 2,300 people employed from 57 different countries. It provides audit, tax and advisory services including management consulting, transaction, financing and regulatory advice to a wide variety of clients from local and middle market entrepreneurs to large multinational companies operating from Luxembourg and the Greater Region. It helps its clients create the value they are looking for by giving comfort to the capital markets and providing advice through an industry focused approach. The global PwC network is the largest provider of professional services in audit, tax and advisory. We’re a network of independent firms in 157 countries and employ more than 184,000 people. Tell us what matters to you and find out more by visiting us at www.pwc.com and www.pwc.lu. Contacts Oliver Weber Partner +352 49 49 48 2568 [email protected] Carsten Brengel Partner +352 49 49 48 2545 [email protected] Christian Heinz Director +352 49 49 48 5861 [email protected] © 2014 PricewaterhouseCoopers, Société coopérative. All rights reserved. In this document, “PwC Luxembourg” refers to PricewaterhouseCoopers, Société coopérative (Luxembourg) which is a member firm of PricewaterhouseCoopers International Limited (“PwC IL”), each member firm of which is a separate and independent legal entity. PwC IL cannot be held liable in any way for the acts or omissions of its member firms.