The European Securities and Markets Authority has published two complementary reports as part of its ongoing effort to simplify EU reporting frameworks:
- A Final Report on the integrated collection of funds’ data
- An Interim Report on the holistic review of transaction reporting
These sit under a broader initiative to streamline reporting across the EU. While both are relevant, the funds reporting workstream is now significantly more advanced and provides the clearest direction for firms.
From discussion to defined direction
Last year’s discussion paper focused on fragmentation and presented multiple structural options. The final report moves beyond that phase and establishes a clearer supervisory direction.
The emphasis is now on practical harmonization, supported by a common data model, aligned definitions, and reduced duplication across frameworks such as AIFMD and UCITS.
EU-level standards vs. national reporting frameworks
A central issue in EU reporting has been the divide between EU-defined requirements and national implementation by competent authorities.
In practice, firms today face:
- Variations in templates and formats across jurisdictions
- Additional local data requirements
- Differences in submission processes and timelines
- Diverging interpretations of the same data fields
The final report directly addresses this by moving toward greater consistency across member states, while still preserving the role of national regulators.
ESMA has proposed a hybrid operational model. National Competent Authorities will remain the primary point of data collection, but validation, storage, and analytics will be centralized at the EU level. This is a critical structural shift. A firm reporting in one jurisdiction versus another would be subject to the same validation rules and data standards, reducing inconsistencies that exist today.
This approach maintains supervisory oversight at the national level while introducing a more unified processing layer across the EU.
Core components of the funds reporting framework
The final report introduces a more structured and actionable framework for EU fund reporting.
A key priority is the development of a single, consistent reporting framework. This is designed to align existing regimes rather than replace them immediately.
At the center of this is the principle of “report once”. The objective is that a single data submission can satisfy multiple regulatory requirements, reducing the need to submit overlapping data across AIFMD, UCITS, and other frameworks.
Data standardization underpins this model. ESMA reinforces the use of harmonized definitions and common identifiers such as LEIs and ISINs, enabling data reuse across reporting obligations.
The report also strengthens the move toward security-level reporting, allowing regulators to derive aggregated insights without requiring multiple submissions in different formats.
Data governance expectations are more explicit than in last year’s paper. Firms will need to demonstrate clear data lineage, validation controls, and consistency across submissions, reflecting a stronger supervisory focus on data quality.
What has materially changed from last year
The most significant change is the level of specificity and commitment to implementation.
The 2025 discussion paper presented multiple structural options, including approaches that allowed for significant national flexibility. The final report consolidates this into a phased integration strategy, with stronger emphasis on EU-level standardization and controlled national alignment.
There is also a clearer articulation of the operating model, particularly through the introduction of the hybrid framework. This provides more clarity on how simplification will be achieved in practice.
Timelines and next steps
The report provides clearer direction on implementation.
The immediate next step is the development of Regulatory Technical Standards and Implementing Technical Standards, which will translate the framework into detailed reporting requirements.
Implementation will be phased:
- Phase one will focus on integrating reporting under AIFMD and UCITS
- Phase two will expand the framework to additional regimes
This staged approach reflects both the scale of change and the need for coordination across EU and national authorities.
Transaction reporting remains in progress
Alongside the funds report, ESMA published an interim report on the holistic review of transaction reporting.
This workstream is still evolving. The interim findings highlight instrument-based reporting and dual-side reporting as key areas where simplification could be achieved.
Industry participants should also note that ESMA has scheduled an open hearing on May 28, 2026, which will provide further insight into the direction of this review and allow for additional stakeholder input before final recommendations are issued.
Implications for firms
For firms subject to EU fund reporting, the direction is now clear. The framework is moving toward greater EU-level standardization, centralized validation, and reduced duplication.
The introduction of a hybrid model means firms will continue to report locally, but within a more consistent and controlled EU-wide structure. This will require a shift toward centralized data strategies, stronger governance frameworks, and more flexible reporting architectures.
While the long-term goal is simplification, the transition will require careful planning, particularly for firms operating across multiple jurisdictions.
Conclusion
ESMA’s latest publications represent a meaningful step toward a more unified and efficient EU reporting landscape. The final report on funds data, in particular, provides a clear roadmap centered on harmonization, the “report once” principle, and a hybrid operational model that balances national oversight with EU-level consistency.
While transaction reporting reform is still developing, the broader direction is clear: a more integrated, data-driven approach to regulatory reporting across the EU.
At iQuant Solutions, we are supporting clients as they assess the impact of these changes and prepare for implementation. If you would like to discuss how the evolving funds reporting framework may affect your organization, we welcome the opportunity to connect.
