The Financial Conduct Authority has launched a package of consultations to recast the UK asset management regime, combining reforms to Alternative Investment Fund Managers rules, fund reporting and remuneration into a more proportionate framework for firms. The FCA said the package would cut industry costs by GBP 128 million a year, mainly through simpler Fund Reporting for Asset Management Entities reporting, while giving it better data to supervise the sector and modernising AIFMD-derived requirements that date from 2013. The proposals would replace current AIFM categories with a three-tier regime based on net asset value, using thresholds below GBP 750 million for small AIFMs, GBP 750 million to GBP 5 billion for medium AIFMs and above GBP 5 billion for large AIFMs. They would simplify or remove some existing requirements, including the current gross and commitment leverage calculations, introduce baseline valuation and risk management standards for all AIFMs, and apply more detailed liquidity, governance and disclosure rules mainly to larger firms or those managing open-ended or leveraged funds. Alongside that, the FCA proposed FRAME as a unified reporting framework for AIFMs, UCITS managers, some overseas funds and other asset management entities, saying it would reduce the overall reporting burden by 75%. A parallel remuneration consultation would replace the current AIFM, UCITS and MIFIDPRU remuneration codes with a single code for in-scope solo-regulated firms, remove smaller firms from scope in some cases, and drop requirements such as mandatory remuneration committees, annual independent reviews and MIF008 reporting. The FCA is seeking feedback before finalising the reforms. Consultation deadlines are 14 October 2026 for the AIFM regime, 16 September 2026 for remuneration reform and 22 September 2026 for FRAME, with final policy statements and Handbook rules targeted for 2027 and implementation of the AIFM and reporting reforms intended for 2028.
Financial Conduct Authority2026-07-14
Financial Conduct Authority consults on UK asset management rule overhaul, targets GBP 128 million in annual savings
The Financial Conduct Authority has proposed a package of reforms to simplify the UK asset manager rulebook, improve supervisory data and reduce firms’ costs by an estimated GBP 128 million a year. The biggest savings are expected from changes to Fund Reporting for Asset Management Entities, alongside updates to AIFMD-related rules and a separate consultation on a simpler remuneration framework for FCA-only firms. Consultation deadlines run from 16 September to 14 October 2026.