Financial & Regulatory Reporting - Cordium

Significant change has been a constant factor within this regulatory environment.  Investment management and advisory organizations continue to seek out Cordium’s two decades of expertise in regulatory oversight.  We aim to make the regulatory reporting obligations for our clients as simplified and seamless as possible.

Specific services Cordium offers include:

ICAAP REPORT SERVICE

Organizations subject to European Union financial services supervision, making discretionary investment management decisions (outside the scope of the AIFMD) will face Pillar 2 requirements that ask the firm to:

  • Perform on an on-going basis a formal internal capital adequacy assessment process
  • Update on an annual or event-driven basis written documentation of that process, detailed assessment of individual risks and risk mitigants thereto, stress testing, reverse stress testing, wind up analysis, and conclusions on the levels of capital that are appropriate for risks faced

The internal capital adequacy assessment process is commonly known as the “ICAAP” report and Cordium can assist with the preparation of this report by:

  • Helping organizations identify its major sources of risks and quantify risk appetite
  • Preparing financial forecasts and stress testing scenarios
  • Creating a wind-down plan and associated calculations
  • Assessing and documenting the mitigation and control environment of risks

FINANCIAL REPORTING

Cordium’s specialist industry knowledge means its experts have successfully prepared thousands of accounts for hedge funds, private equity firms, and other organizations. Outsourcing financial reporting to a trusted partner who understands each individual organization means accounts are filed correctly, on time, with just the appropriate management focus. Services Cordium provides include:

  • Preparing monthly management accounts and head office reporting
  • Forecasting cash flows
  • Assessing funding requirements
  • Preparing annual accounts, including consolidated group accounts
  • Year-end audit support and liaison with auditors on all accounting matters
  • Advising on UK GAAP and IFRS treatments and statutory reporting requirements

REGULATORY REPORTING

The regular reporting that organizations must give to regulators can be time-consuming and resource intensive to prepare and complete. Cordium has more than two decades of experience executing on this type of reporting in key jurisdictions, including the US, UK, Malta, and Hong Kong. Hundreds of financial services firms over that time have trusted Cordium to file this important information. Ways Cordium can help include:

  • Cordium can also assist firms with various initial and ongoing regulatory reporting requirements.  Examples include, but are not limited to, filing Form D’s, Section 13 filings (e.g., 13F, 13H), and the Form PF
  • Providing integrated regulatory and accounting advice to principals and Head Office, as required
  • Forecasting prudential resources and robust capital planning
  • Preparing and filing regulatory returns on systems provided by supervisors.

PAYROLL

Payroll is an essential part of running an organization, and it is also a function that can be easily outsourced – freeing up management time and resources.

Cordium’s payroll service is convenient, cost-effective and flexible – Cordium’s in-house system can be tailored to handle all specific requirements. The team at Cordium are also flexible, supporting the organization’s working practices and picking up the tasks the organization wishes to offload.

Cordium can also run payroll and handle all filings as required for employees; calculate payroll deductions and net pay; as well as prepare monthly payslips and year-end tax filings.

TRANSPARENCY OR ANNEX IV REPORTING SOLUTIONS

With few exceptions, non-UCITS funds that are marketed into the EEA are classified under European rules as Alternative Investment Funds (AIFs). Managers of AIFs, regardless of where in the world they are located, are required to perform ‘Transparency’ or ‘Annex IV’ reporting within the EEA.

The scale and scope of this reporting can be significant. For example, the mandatory reporting taxonomies are highly granular. Each contains 38 detailed questions relating to the AIFM and around 300 pertaining to each AIF marketed and/or managed in the EEA, covering both static and non-static information. The information to be reported must be obtained from a variety of sources: typically including the AIFM’s own accounting and prudential records, transactional, position and valuation data maintained by fund administrators, and other 3rd party sources and systems.

Cordium can help ease the burden of this reporting requirement. Transparency reporting solutions include:

  • Ad hoc advice on discrete questions relating to taxonomies or Directive interpretation
  • The review and/or challenge of in-house or administrator prepared filings
  • Full ‘managed service’ outsourcing for EEA and non-EEA AIFMs required to report to national regulators.

However simple or complex an organization’s transparency reporting needs are, Cordium’s unparalleled regulatory and reporting expertise can assist.

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