EU regulator introduces plan to simplify funds and transactions reporting
06 May 2026 France
Image: MuhammadArslan/stock.adobe.com
The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, has launched a harmonised approach to funds reporting, and has initiated a path towards more efficient transaction reporting across European markets.
ESMA has released two reports, ‘Final Report on the integrated collection of funds’ data’, and ‘Interim Report on the holistic review of transaction reporting’ which are components of ESMAs wider supplication and burden reduction agenda, launched in 2025.
The funds’ data report, sets out a strategic shift from fragmented national reporting towards a common EU reporting framework.
The approach is centred on a single reporting template designed to remain proportionate for different fund sizes and investment strategies, while meeting supervisory needs, and intends to reduce duplication, improve data consistency and enhance the usability of data for authorities.
ESMA has outlined a hybrid operational model to support this move, under which data validation, storage and analytics would be organised at EU level, while data collection would remain at national level.
By facilitating data sharing across authorities, the centralised hub will offer efficiency gains not only for authorities but will also contribute further to burden reduction by limiting duplicative data requests.
The development of regulatory and implementing technical standards for fund reporting will be presented next year.
The implementation of the new template and the remaining recommendations will be gradually introduced proceeding this.
The first phase focuses on the integration of reporting under undertakings for collective investment in transferable securities (UCITS) and the Alternative Investment Funds Manager Directive (AIMFD) and the second phase will expand the integrated framework to other reporting obligations.
In the transaction report ESMA identified the core challenges in the existing reporting frameworks, based on the feedback from more than 100 respondents on transaction reporting simplification.
ESMA indicated the most effective approaches to overcome these hurdles in the document including: instrument-based and dual-side simplifications and the implementation of a “report once” framework across European Market Infrastructure Regulation, Markets in Financial Instruments Directive, and Securities Financing Transactions Regulation in the long term.
Most respondents expressed the major drivers of cost and complexity were overlapping and inconsistent reporting requirements, frequent, and unsynchronised regulatory changes, fragmented reporting channels and dual reporting.
ESMA will further engage with market participants, through an open hearing that will be held on 28 May, before moving forward with final recommendations to be published by mid-year.
Verena Ross, ESMA’s chair, comments: “ESMA is advancing on the EU-wide simplification of regulatory reporting, targeting both funds reporting and transaction reporting.
“The objective is to reduce operational burden for market participants by introducing the principle of ‘reporting once’, while also improving data quality and supervisory effectiveness. This will be achieved through harmonisation and enhanced data sharing between authorities across the EU.”
ESMA has released two reports, ‘Final Report on the integrated collection of funds’ data’, and ‘Interim Report on the holistic review of transaction reporting’ which are components of ESMAs wider supplication and burden reduction agenda, launched in 2025.
The funds’ data report, sets out a strategic shift from fragmented national reporting towards a common EU reporting framework.
The approach is centred on a single reporting template designed to remain proportionate for different fund sizes and investment strategies, while meeting supervisory needs, and intends to reduce duplication, improve data consistency and enhance the usability of data for authorities.
ESMA has outlined a hybrid operational model to support this move, under which data validation, storage and analytics would be organised at EU level, while data collection would remain at national level.
By facilitating data sharing across authorities, the centralised hub will offer efficiency gains not only for authorities but will also contribute further to burden reduction by limiting duplicative data requests.
The development of regulatory and implementing technical standards for fund reporting will be presented next year.
The implementation of the new template and the remaining recommendations will be gradually introduced proceeding this.
The first phase focuses on the integration of reporting under undertakings for collective investment in transferable securities (UCITS) and the Alternative Investment Funds Manager Directive (AIMFD) and the second phase will expand the integrated framework to other reporting obligations.
In the transaction report ESMA identified the core challenges in the existing reporting frameworks, based on the feedback from more than 100 respondents on transaction reporting simplification.
ESMA indicated the most effective approaches to overcome these hurdles in the document including: instrument-based and dual-side simplifications and the implementation of a “report once” framework across European Market Infrastructure Regulation, Markets in Financial Instruments Directive, and Securities Financing Transactions Regulation in the long term.
Most respondents expressed the major drivers of cost and complexity were overlapping and inconsistent reporting requirements, frequent, and unsynchronised regulatory changes, fragmented reporting channels and dual reporting.
ESMA will further engage with market participants, through an open hearing that will be held on 28 May, before moving forward with final recommendations to be published by mid-year.
Verena Ross, ESMA’s chair, comments: “ESMA is advancing on the EU-wide simplification of regulatory reporting, targeting both funds reporting and transaction reporting.
“The objective is to reduce operational burden for market participants by introducing the principle of ‘reporting once’, while also improving data quality and supervisory effectiveness. This will be achieved through harmonisation and enhanced data sharing between authorities across the EU.”
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