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Kifaya Belkaaloul, Head of Regulatory at NeoXam, comments on the Fund Data objectives of the EU’s securities and markets authority.
As summer gets into full swing and the industry naturally slows, European watchdogs have kept the momentum going. Late last month, the European Securities and Markets Authority (ESMA) published a significant discussion paper on the integrated collection of Funds Data. While this initiative remains at the consultation phase, its implications are far-reaching for Institutional Asset Managers across the European Union (EU).
The paper is part of ESMA’s mandate to report to the European Commission (EC) by April next year, following recent changes to the AIFMD and UCITS directives. At its core lies an objective to reduce fragmentation, eliminate duplication in supervisory Reporting, and crucially, lay the foundation for a more unified and streamlined approach to Data within Asset Management.
Although it is early days, ESMA has signalled a clear direction of travel. Two broad options are under consideration. One seeks to eliminate overlapping obligations while retaining the current framework structure. The other involves more ambitious plans to create a unified EU-wide Reporting template. The latter aligns with the longstanding industry vision of “report once, use many times”.
The rationale behind this initiative is difficult to dispute. Today’s Fund Managers are faced with copious amounts of overlapping Reporting regimes. From AIFMD and UCITS, to EMIR and SFT, each regime has its own formats, definitions and submission channels. For firms operating across multiple jurisdictions, the result is a growing Compliance burden, increased operational risk, and often duplicated Data submissions.
However, integration will not be without its challenges. Harmonising frameworks and delivering a unified model requires more than Regulatory intent, it calls for real investment in data infrastructure and vastly improved interoperability. Many funds will need to reassess legacy systems that were not built for centralised architectures or real-time regulatory alignment. A key enabler will be the development of a common Data dictionary to ensure that terms, formats, and Reporting standards are understood and applied consistently across the industry.
Although the discussion paper does not impose immediate obligations, this is a timely opportunity for Asset Managers to begin assessing their readiness. The direction of policy is now visible. Early groundwork, such as streamlining internal data flows, reviewing current Reporting overlaps, and improving data traceability, will place firms in a stronger position as proposals evolve.
Meeting these demands will require adaptable tools — ones capable of integrating Regulatory requirements across multiple jurisdictions, automating data formatting, and enabling structured, auditable Reporting workflows. Equally critical is the ability to reuse the same underlying data across various Reporting templates and supervisory requests. As expectations move closer to the “Report Once” Model, operational agility will be key.
Yet beyond Compliance, there is also a strategic opportunity here. As data becomes more harmonised and reusable, firms can gain clearer insights into their own risk exposures, client behaviours and market activity. A more consistent and standardised approach to Regulatory Reporting can help transform Compliance Data into a strategic asset, as opposed to a cost centre.
While ESMA’s proposals are not yet binding, now is the moment for firms to help shape the future of Reporting in Europe, ensuring that any new framework remains proportionate, practical, and fit for purpose.
By taking a proactive approach now, Asset Managers can better prepare for what lies ahead, positioning themselves to remain competitive – not just compliant – in the next chapter of European Regulatory transformation.
