The Financial Conduct Authority (FCA)
has proposed a package of reforms that would tailor requirements
proportionately for asset managers, cut costs for firms and give
better data to supervise the sector more
effectively.
A large share of the £128m-a-year
savings are expected to come from simpler Fund Reporting for
Asset Management Entities (FRAME) requirements.
These would be tailored to the
specific circumstances of UK industry, delivering better data to
make regulation more efficient.
The package would also modernise and
simplify Alternative Investment Fund Managers Directive
(AIFMD)-related rules dating from
2013.
The updated rules would be fit for
today's UK market: more flexible, tailored and proportionate,
while maintaining clear standards, especially for firms serving
retail clients.
A consultation by the regulator is
also seeking to simplify remuneration rules for the relevant
firms, which are ones solely regulated by the FCA, by replacing
overlapping remuneration codes with a clearer, more proportionate
framework, while maintaining appropriate standards and
safeguards.
Simon
Walls, executive director, markets, at the FCA,
said:
By tailoring the regime
for UK asset managers, we can collect better
data while also saving industry 10s
of millions of pounds a
year.
With a sharp focus on
proportionality, we can particularly boost freedom for
smaller firms to find new ways to achieve the
same high standards.
Together, the proposals are
a practical example of the FCA's strategy in action: becoming a
smarter regulator, which is more efficient and effective, using
proportionate data collection to better identify
risk.
The FCA is consulting on the proposals
and is inviting feedback before making final
decisions.
Notes to editors
-
Read more: UK Alternative
Investment Fund Managers (AIFM) regime consultation paper with a deadline for input of 14 October 2026, the Solo
Remuneration Rules Reform consultation paper with a deadline for input of 16 September 12026 and the
Fund Reporting for Asset Management Entities (FRAME)
consultation paper with a deadline for input of 22 September
2026.
-
The renumeration consultation
covers full-scope Alternative
Investment Fund Managers (AIFM), undertakings for collective
investment in transferable securities (UCITS) management
companies, and non-SNI MIFIDPRU investment firms.
