Managing investments across several countries often means dealing with multiple financial institutions, custodians and investment platforms. Behind every transaction sits an extensive regulatory reporting system that increases operational costs across European financial markets and, indirectly, the cost of providing investment services.
European markets are therefore moving towards a “report once” model, where the same information is submitted only once and reused for multiple regulatory purposes. For investors, this is far more than a technical upgrade. Over time, it should make cross-border investing simpler and reduce unnecessary administrative duplication.
Why reporting is changing
Most investors never see what happens after an investment order has been executed. In reality, a single transaction may be reported under several different regulatory frameworks that have evolved independently over time.
The result is duplicated information, different technical standards and repeated validation of the same data. According to ESMA’s published analysis, maintaining the current reporting architecture costs the European market an estimated €1.0 to €4.2 billion every year, largely because of fragmented rules, duplicate reporting requirements and dual-sided reporting.
This does not mean investors will suddenly have to complete additional forms. The impact is indirect. Financial institutions face higher operational costs, more complex reporting processes and longer implementation cycles whenever reporting requirements change.
How “Report Once” will work
The long-term objective is to create a single modular reporting framework built around the “report once” concept. Rather than submitting identical information through multiple reporting channels, firms would report the data once, allowing it to serve several regulatory and supervisory purposes.
The transition will be gradual. Before the new framework is introduced, several intermediate improvements are expected, including reducing back-reporting requirements, simplifying the notification of errors and omissions, reviewing dual-sided reporting and introducing targeted simplifications under MiFIR, EMIR and SFTR.
According to the current roadmap, the integrated framework is expected approximately 18 months after the legislative process is completed, followed by another three to four years of implementation. Investors should therefore view the initiative as a long-term evolution rather than a sudden regulatory change.
“The real value of reporting reform is not fewer forms – it is reducing the risk that the same information exists differently across multiple systems.”
Why cross-border investors should pay attention
Investors with international portfolios often work with several financial institutions at the same time. Each institution may currently apply different reporting processes and request similar information separately. That is why clients are sometimes asked to confirm identical information more than once.
A more harmonised reporting framework should gradually reduce these duplications. At the same time, it will increase the importance of accurate client information. Personal details, tax residency and beneficial ownership data will need to remain consistent wherever investment relationships are maintained.
Simplified reporting does not mean lower expectations regarding data quality. On the contrary, accurate and up-to-date information will become even more important as reporting becomes more integrated.
Before your next investment
If you invest across multiple countries or use several financial institutions:
- check that your personal and tax residency details are consistent across all providers;
- keep documentation supporting changes in tax residency or ownership structure;
- whenever your personal circumstances change, update your information with every relevant institution rather than only one.
💡 Tip: If you expect to change your tax residency or registered address, update your records before placing your next investment order. Correcting inconsistent information afterwards is usually far more complicated than updating it in advance.
Frequently Asked Questions
Will investors be affected directly? Mostly indirectly. The reforms focus on regulatory reporting by financial institutions but should eventually reduce duplicated administrative processes for clients.
Will I need to complete additional forms? Current proposals suggest the opposite. The objective is to reduce duplicate reporting rather than introduce additional client documentation.
Why will implementation take several years? The project requires legislative changes, technical development and coordinated implementation across European financial markets.
Could this reduce operating costs for financial institutions? Yes. ESMA estimates recurring operating cost reductions of 22% to 24%, with annual net savings ranging between €250 million and €1 billion once the new framework is fully operational.
What is the main benefit for investors? Less duplication, more consistent client data and a simpler administrative experience when investing across borders.
