At iQuant Solutions, we understand the complex landscape of regulatory reporting that asset managers, private equity firms, and insurance companies navigate daily. The volume and disparate nature of reporting obligations often result in significant operational challenges, increased costs, and ongoing compliance risks. It is within this context that we welcome this week’s Discussion Paper from the European Securities and Markets Authority (ESMA) on the integrated collection of funds’ data.
This paper represents a vital step towards a more unified and efficient European reporting regime. ESMA’s initiative aims to address the fragmentation, inconsistencies, and overlapping requirements that currently burden financial entities. The proposed move towards an integrated framework, encompassing topics such as data semantics, reporting formats, granularity, and frequency, demonstrates a growing recognition of the need for more streamlined and less burdensome data collection.
Key Findings and Challenges
- Fragmented Reporting: Over 100 different reporting templates are potentially being used across the EU, varying by fund type and jurisdiction.
- Overlapping Obligations: Funds, especially Money Market Funds, are subject to overlapping reporting under multiple regimes, such as AIFMD, UCITS, MMFR, and other regulations.
- Inconsistencies: Timing, frequency, and data definitions differ across frameworks, complicating data aggregation.
Our clients and industry colleagues consistently cite technical and operational challenges, including:
- Duplication of Effort: Similar data must be submitted across multiple uncoordinated reporting frameworks.
- Inconsistent Data Definitions: Diverging interpretations of the same data elements lead to reconciliation issues and possible misreporting.
- High Operational Costs: Resources are consumed by siloed systems and complex data aggregation.
- Lack of Harmonization: Differing reporting timelines, formats, and submission methods inhibit efficiency.
ESMA’s paper directly addresses these challenges by proposing a more cohesive reporting system.
Proposed Options for Integrated Reporting
The paper outlines three strategic options for a more integrated reporting framework:
Option 1: Multiple Reporting Obligations with Data Reuse
This approach proposes a coherent framework across multiple existing EU reporting regimes. It aims to minimize redundant submissions by enabling data reuse and requiring the use of common identifiers (ex., LEI, ISIN, UPI, UTI) and a harmonized data dictionary across different regulatory mandates. This means that if a specific data element is required for multile regulations, such as AIFMD and MMFR, it would be reported once in a standardized manner and then internally reused or referenced for subsequent reports, rather than being collected, transformed, and submitted independently each time. This option maintains distinct reporting obligations but streamlines underlying data management.
Option 2: Fully Integrated EU-Wide Framework
This would replace all existing EU and national reporting obligations with a single, comprehensive EU-wide reporting structure. It would feature a modular and layered data model, starting with a core set of fundamental data elements and allowing for supplementary, specific modules as needed. The implementation would require a complete overhaul of existing reporting infrastructures for both firms and regulators.
Option 3: Integrated Framework with National Flexibility
Building on Option 2, this would allow national authorities to include specific reporting fields to address local supervisory needs. This acknowledges the legitimate need for national supervisors to collect particular data while embedding it within a single, consistent framework.
Priorities for Integration
To move towards integration, the paper suggests focusing on several key areas:
- Data Granularity: Shifting to security-level reporting is proposed as a baseline, which would enable regulators to derive aggregated figures and reduce the need for fund managers to report data in various breakdowns.
- Technological Infrastructure and Innovation: Modern frameworks such as APIs, cloud computing, AI/ML, and Distributed Ledger Technology (DLT) will be essential for scalable, secure, and intelligent reporting systems.
- Reporting Frequency: Aligning reporting frequencies across regimes, potentially with a monthly baseline, will reduce duplication, while a proportional approach could ensure fairness for smaller firms.
- Data Governance and Quality: Integrated systems demand an enhanced focus on data governance, including ownership, lineage tracking, validation, and stringent security protocols to ensure the integrity and confidentiality of the reported information.
Conclusion: A Collaborative Journey Toward a More Cohesive Future
ESMA’s Discussion Paper on the integrated collection of fund data marks a pivotal step toward addressing longstanding inefficiencies in the European financial reporting landscape. By moving toward a unified reporting framework, the initiative strives to reduce operational burdens, improve data quality, and enhance regulatory oversight, benefiting the entire financial ecosystem.
While the European initiative may not resolve all global reporting challenges, it sets a meaningful precedent. A harmonized approach within the EU could help drive future international collaboration around shared data standards and technological efficiencies. The broader industry imperative remains clear: we must collectively pursue greater global interoperability to address the complexity of cross-border regulatory obligations.
At iQuant Solutions, we recognize that this transition, though beneficial, poses significant implementation challenges. As a trusted partner in regulatory transformation, we provide the flexible technology and strategic expertise needed to support firms through this change. Our platform is built to:
- Automate data aggregation and transformation in line with evolving data dictionaries and regulatory formats;
- Support multi-jurisdictional reporting, reflecting the global nature of modern financial operations;
- Deliver a user-centric experience through intuitive dashboards and audit trails that simplify oversight and reduce reliance on manual processes.
We are committed to continuous innovation, helping firms stay ahead of change while achieving greater confidence and efficiency in their compliance workflows.
With the deadline for comments set for September 21, 2025, now is the time to engage. We invite you to contact us directly to share your perspectives and collaborate on shaping a more coherent and resilient financial reporting ecosystem—together.
Read the full discussion paper here: ESMA Discussion Paper on Integrated Reporting
