3 steps to optimise your Regulatory Output production

Featuring our Regulatory Output Volume Calculator

Navigating the complexities of financial regulations and distribution requirements across Europe can be a daunting task for fund managers and administrators. With several jurisdictions, local financial regulators and 24 official languages in the EU alone, following the ever-changing requirements might seem impossible and the sheer volume of required regulatory submissions can be overwhelming.

So, where should you start?

Step 1: Understand

Work out the volume of outputs you’re required to deliver - how? Our Regulatory Output Volume Calculator helps asset management firms bound by EU or UK regulations to gain an understanding of how many regulatory outputs, such as documents and templates, they need to produce and submit per annum, taking into account current regulatory and distribution requirements. For instance, in the EU, each share class of a UCITS fund and AIF funds, that are promoted to retail investors, requires a PRIIPs KID to be submitted annually to each Home State and Member State regulator where funds are registered for distribution, each of which needs to be translated into the state’s local language. This, together with output varieties and required versions can add up to thousands of documents.

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Things to consider when calculating Regulatory Output volume:

Frequency: Reports and data templates need to be submitted or distributed at varying frequencies, which adds to the production complexity and could increase costs. For example, a PRIIPs KID needs to be submitted once a year but may need to be re-published in an event of any substantial changes. Whilst data templates can be distributed at bespoke frequencies dependant on clients’ individual requirements, we find that our clients most commonly require template production on a quarterly basis, although some will require their production as often as weekly.

ESG submissions: Amongst other output production, our calculator takes into account obligations of funds subject to EU SFDR reporting requirements (Article 8 funds), and UK SDR.

Language version requirements: Our calculator takes into consideration any language version requirements for the relevant documents. Given the large numbers of funds, share classes and jurisdictions asset managers distribute to, this can quickly add up to thousands of submissions per year. As an example, for one of our clients, we have produced 55,000 PRIIPs KIDs in 22 language versions.

Calculate your Regulatory Output volume

Step 2: Consolidate

Whilst the calculator is a nice and easy tool to estimate the volume of regulatory outputs you are required to produce for submission each year, it also allows you to review the types of output you may be required to produce.

Here, it is important to highlight that the same data points are often required across outputs. In practice, this means that sticking to a single supplier with regulatory expertise and robust data management and technology could solve a number of your challenges and facilitate:

cost-efficiency from reduced margins, workloads, overheads and fees (e.g. for re-publication).
process rationalisation, transparency, compliance, and speed-to-market.
mitigation of risks arising from inaccurate and inconsistent distribution of data into the market.

Explore our range of regulatory documents and templates

Step 3: Adjust

Understanding the challenge will, first and foremost, allow you to assess if you can handle such production in-house or if you will need to select an expert provider. One that not only has the capabilities to produce large volumes of your required output in different languages, ensuring data accuracy and consistency, but also understands and continuously scans regulatory horizon across jurisdictions so that you don’t have to.

Outsourcing production and distribution to a single supplier not only unlocks cost savings and operational optimisation but also helps mitigate risks arising from inaccurate or inconsistent data used across these outputs.