EMIR: Oversight of Delegated Reporting

The Irish Funds Industry Association has published an article on the oversight of delegated EMIR reporting, which covers relevant regulatory requirements and expectations. The article provides guidance for Irish authorised fund management companies (ManCos) on overseeing EMIR reporting delegated to third parties.
EMIR, the European Market Infrastructure Regulation, was introduced after the 2008 financial crisis to improve the stability of the financial system. EMIR REFIT, an update to EMIR, will come into effect on 29 April 2024, clarifying that ManCos bear responsibility for EMIR reporting on behalf of investment funds they manage.
The Central Bank of Ireland has been increasingly focused on the quality of EMIR data and the oversight of Reporting Delegates. ManCos are expected to have appropriate oversight of data reporting, ensuring accuracy, timeliness, and proper escalation channels.
The article suggests a practical approach to overseeing Reporting Delegates that meets regulatory requirements and expectations:
– Appointment of Reporting Delegate: ManCos should conduct due diligence on Reporting Delegates and document the delegation arrangement, including reporting requirements and key performance indicators.
– Oversight of Delegate: A specific Designated Person should be assigned to oversee the Reporting Delegate, review the accuracy of reports, and receive regular reporting.
– Policy on Oversight of EMIR Reporting: ManCos should have an Oversight of EMIR Reporting Policy, detailing the responsible Designated Person and the approach to due diligence, oversight, and error management.
By addressing these areas, ManCos can effectively oversee delegated EMIR reporting, meet regulatory requirements, and satisfy regulator expectations.