ESMA’s blueprint to streamline AIF/UCITS fund reporting

ESMA’s May 2026 report sets out its vision of how a harmonized EU supervisory reporting system for investment funds could work in practice.

Why is change needed?

The current fund reporting landscape is said to be highly fragmented, with over 100 different reporting templates used across the EU. Similar information is requested through separate processes, using different definitions, formats and reporting channels. This creates unnecessary duplication, inconsistencies and administrative burden for fund managers operating across multiple Member States.

Industry opinion

Responding to ESMA’s 2025 discussion paper, the funds industry strongly supports Option IR2 (fully integrated EU reporting), while rejecting national reporting likely to increase operational complexity. Key success factors cited include “genuine simplification” (i.e. no layering of additional obligations), a phased rollout, and effective governance (to ensure authorities can rely on the new harmonized system).

What does ESMA now propose?

Going forward, ESMA’s core principle is “report once, use many times”, based on:

• A single modular reporting template: to cover requirements across AIFMD, UCITS, Money Market Fund reporting (MMFR) and ECB statistical frameworks. Core modules apply to all funds, with others tailored to fund type, strategy and risk profile. Initially expanded AIFMD “Annex IV” reporting will be aligned with the new UCITS regime, requiring standardized information at both fund and fund manager levels.
• A common data dictionary: a "define once" principle delivered by a uniform semantic layer, ensuring all data concepts are interpreted consistently across EU authorities and reporting entities.
• Standard reporting format: ISO 20022 XML (i.e. the majority preference).
• National-level data collection: entities submit their reports to a single designated national authority (NCA or NCB), which transmits data a new centralized hub. NCAs continue to directly supervise fund firms.
• A centralized EU data hub: maintained by ESMA, acting as “the single point of truth” for all fund data. This will drive a “Single Supervisory Toolkit”, based on centrally validated data (shared across all entitled authorities), including common analytical tools.

Implementation path?

ESMA suggests a two-phase approach:

• Phase 1: consolidates the revamped AIFMD and new UCITS supervisory reporting, based on draft technical standards (RTS/ITS) due by April 2027, with go-live by H1-2029 “at the earliest”.
• Phase 2: extended to MMFR and statistical reporting, which will require “an additional few years”.

Until the new system is proven robust, existing reporting templates will remain in force.

Next steps?

ESMA will publish a consultation paper later this year and commence IT system development in 2027, subject to funding. A joint governance framework and enhanced data-sharing agreements (between ESMA, EU-NCAs, the ECB, ESAs, NCBs and ESRB) are key interim priorities.

Meanwhile, the long-term success of ESMA’s new EU reporting system is “fundamentally contingent” on securing multi-year financial resources and dedicated full-time staff. In due course, industry stakeholders - reporting entities and supervisory bodies alike - must also plan their respective transition paths.

Our forthcoming webinar will take a closer look at what lies ahead. More to follow.