JUMP Club U’ June 2021

The JUMP team would like to thank all of those who participated in our summer edition of JUMP Club U’ on June 18, 2021, which took place in a hybrid format allowing our users to participate in-person if they so desired. This JUMP Club U’ focused on regulatory reporting, with a focus on PRIIPS reporting and standard AMF reporting of non-compliance with investment rules, as well as other report types (ACR ADS, AIFMD, etc.).  The JUMP team continues to enrich its software suite in order to help our clients focus on their core business: investment management.   

 

PRIIPS Reporting

What is PRIIPS regulation ?

  • PRIIPS regulation standardizes key information documents (KIDs) relating to packaged retail and insurance-based investment products (PRIIPS)
  • Objectives:  
    • Improve transparency, centralization, and standardization of financial information 
    • Enable customers to compare financial products and make the right decisions 

Affected products :

  • UCITS (mutual funds) 
  • Non-UCITS funds (as of January 1, 2022) 
  • Alternative investment funds  
  • Securitized products and non-UCITS deposits and structured securities 
  • Insurance products   

PRIIPS regulation in JUMP:   

PRIIPS regulation is covered by JUMP at all levels:  

  • At the Data level: integration of fund and product data (funds, shares, companies, asset classes, indicators, etc.), management of disclaimers, etc. 
  • At the Risk level: integration of calculated data or automatic calculation of risk indicators (SRI with VEV, MRM and CRM), performance indicators, performance scenarios, implicit and explicit costs 
  • At the Compliance level: implementation of data presence and data update checks, as well as publication deadline checks 
  • At the Reporting level: report formatting (KID, EPT, TPT, LPT, etc.), automatic generation and publication of reports, report validation workflow, production monitoring dashboard, etc.  

JUMP: a single PRIIPS platform for all your teams  

Examples of how your teams could be organized:  

  • Legal team: Data entry and Monitoring 
  • Reporting team: Design, Publication, Monitoring  
  • Data management team: Data entry and Monitoring 
  • Risk team: Monitoring, Compliance and Ratios 

Why choose JUMP to meet the challenges of PRIIPS regulatory obligations?  

After 15 years in the market, JUMP has been recognized by some of the major players in the industry for its expertise in investment management solutions, which include covering regulatory issues. 

JUMP accompanies its PRIIPS service with continuous regulatory monitoring to offer a complete and sustainable solution, respecting the regulatory rules already in force as well as those to come.  

JUMP offers its clients quick and customizable implementation of the PRIIPS package, all while adapting to the client’s ecosystem and data, thanks to advanced customization capabilities (creation of custom ratios, checks, reports, dashboards, etc.).   

JUMP’s PRIIPS package allows you to:  

  • Automate the generation and distribution of PRIIPS reports in multiple formats and languages 
  • Centralize financial data, calculations, and production processes related to PRIIPS regulations within a single platform 
  • Manage and control report production through an automated workflow system (data, texts, and publication deadline verifications) 
  • Share a common platform with all internal contributors  

Quarterly AMF reporting on breaches of investments ratios 

In this section, our guest speaker Lise-Hélène Brunon, Head of Compliance at AMPLEGEST and Vice President of the AFG Reporting and Accounting Commission, spoke about the new quarterly reporting of AMF breaches.  

General information about new quarterly reporting:   

  • Implemented by the AMF in its General Regulations
    • National provision, but similar toones already in place or under study in other EU countries  
  • Affected players: Asset Management companies
  • What: reporting of non-compliance with investment rules of CISs and their financial impacts 
  • Objective: implementation of a permanent process for “downstream” supervision of industry players  
  • Timetable: implementation effective Q3 2021 
  • Report frequency: quarterly
  • Report content: lists of breaches qualified as “active”, following a standardized nomenclature of said breaches

Main content of the report:   

The Report can be broken down into 4 parts:  

    1. Identification of the breach 
    2. Identification of the product concerned 
    3. Details of the breach of the product concerned 
    4. Analysis of the breach 

Ways to implement the reporting in JUMP  

In order to implement this reporting in JUMP, you should consider the following points:  

  • Adopt standard AMF nomenclature for the results of UCITS, FIA, MMF, etc. – type regulatory checks (code, label, etc.)
  • Be able to characterize active breaches using pre-trade controls, comments, detection of movements or differences in day-to-day positions, etc. 
  • Be able to define the level of financial impact, potentially by calculating the P&L generated by the movement or excess exposure (via adjustment orders, marginal contribution to P&L, etc.) 

Annual AMF Reporting (ADS and ACR)

What is annual AMF Reporting (ADS and ACR)?  

Each year, management companies must provide the AMF with: 

  • Information relating to the management companies’ control system. This is the Annual Control Report (ACR)
  • Statistical information on staff numbers, accounting data, shareholder equity, and assets under management. This data constitutes the Annual Disclosure Sheet (ADS)

What JUMP offers 

JUMP can automatically enter information from line T3-A-1 to line T3-A-27 of the ACR ADS, as well as the following information:   

  • Number of clients for investment advice purposes
    • including professional and non-professional clients as defined in the MiFID 
  • Number of client accounts managed under mandate
    • including professional and non-professional clients as defined in the MiFID
  • Number of client accounts for reception and transmission of orders (RTO)
    • including professional and non-professional clients as defined in the MiFID 

AIFMD Reporting

What is AIFMD Reporting?  

AIFMD reporting is aimed at investment managers of investment products not covered by the UCITS IV directive, namely alternative investment funds, known as AIFs. The AIFMD governs EU investment managers who manage AIFs or third-country investment managers who manage EU AIFs.   

This report is generated from a template provided by European Securities and Markets Authority (ESMA).  

There are two types of report according to the volume of assets under management:   

  • Simplified reporting: for AIFMs below €100 million (unleveraged) or €500 million (leveraged), which must transmit basic forms that include AIF manager information and AIF information for each managed investment vehicle 
  • Full reporting: includes information from the simplified template, as well as the additional sheet on the leverage of each AIF 

Report frequency is determined by the volume of assets under management and the presence of leverage  

Target solution offered by JUMP  

This report is composed of 2 parts:   

  • One part which will be automatically fed by JUMP  
  • Another part that will be manually fed by the user, for example: 
    • Changes in reporting frequency or jurisdiction 
    • Information on counterparties, dominant influences, or preferential treatments 
    • AIF strategies (a default solution is proposed) 
  • In some cases, JUMP offers default values, which are entered directly into the report template

The ROI of automating this reporting is around 2 to 3 days per AIF in order to reclassify assets according to AIFMD classifications and recalculate the gross performance.

Our teams remain fully operational and at the service of our customers, not only to support them in their day-to-day operations but also to discuss the major challenges facing the investment management industry. The JUMP team continues to enhance its software suite on an ongoing basis in order to help our customers focus on their core business: investment management. 



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