Invest Europe has developed a dedicated template to help private equity fund managers provide data to their insurance investors under the new Solvency II reporting requirements.
Insurance investors currently represent more than 10 percent of the €44 billion invested into European private equity, Invest Europe said in a statement.
The template has been produced by Invest Europe’s Investor Regulation Working Group and is available to Invest Europe’s members.
Invest Europe has based its template on a standardized template for the new regulation issued last year by the Club Asset Management Performance & Reporting (Ampere), which is sponsored by the French Asset Management Association, the German Investment Funds Association BVI and the UK’s Investment Management Association, according to the statement.
Solvency II came into effect on 1 January and provides a regulatory framework for EU insurers. The regulation requires insurance companies to disclose information about investments and as a result, in order to support insurers in meeting their new reporting obligations, private equity managers are expected to provide data and information about the funds they manage.
Since the regulation was introduced there has been some confusion about what information EU insurers are required to gather from external fund managers for reporting purposes. This uncertainty has been forcing insurers to send GPs broad information requests that mimic information already provided in quarterly statements, creating a redundant reporting exercise for the firm’s back-office staff, as previously reported by pfm.
Invest Europe’s new document has been introduced to provide further clarity about the type of information that should be reported under different data points, including information about portfolio companies and valuations. It also contains an example of a completed template for a direct private equity fund.
“We’re sure our fund manager and insurance company members across Europe will find this a clear, useful and straightforward tool to help them comply with this new regulation,” said Michael Collins, Invest Europe’s deputy chief executive and director of public affairs.
Members can access the Solvency II reporting template via the policy section of Invest Europe’s website.