The FCA has announced proposed reforms aimed at creating a more streamlined and proportionate regulatory framework for alternative asset managers. These changes are designed to help UK firms operate more efficiently on a global scale, while maintaining strong risk management and consumer protection. Asset managers are a cornerstone of the UK economy, overseeing £12.3 trillion in mainstream assets and £2 trillion in alternative investments. Private markets have seen rapid growth, tripling in size over the past decade. Much of the UK’s current regulation originates from EU legislation, particularly the Alternative Investment Fund Managers Directive (AIFMD). The government is now consulting on repealing key firm-facing AIFMD requirements, with the FCA expected to introduce tailored UK-specific rules in their place.
Simon Walls, interim executive director of markets at the FCA, said: “We want rules better tailored to UK investment managers to help them operate more efficiently and support competition, innovation, and economic growth.”