HM Treasury has launched a consultation, alongside the Financial Conduct Authority, on simplifying the UK regulatory regime for Alternative Investment Fund Managers (AIFMs) by removing what it describes as unnecessary barriers to investment and reducing administrative burdens. The proposals focus on refreshing regulatory thresholds to address a current “cliff edge” in which firms face a suite of additional requirements once they reach EUR 100 million in assets. The consultation considers a more graduated approach under which only the largest firms, with assets over GBP 5 billion, would be subject to the full scope of requirements, while the majority of firms would face less prescriptive rules. HM Treasury expects the changes to save asset managers “millions” in time, money and resources, and the consultation is positioned as relevant for hedge funds, private equity firms and investment trusts. The consultation runs for nine weeks from 7 April to 9 June. After it closes, feedback will be used to design draft legislation, which HM Treasury plans to share with asset management businesses next year.
HM Treasury 2025-04-07
United Kingdom's HM Treasury launches consultation to simplify Alternative Investment Fund Manager regulation and create a graduated regime above GBP 5 billion
HM Treasury and the Financial Conduct Authority have initiated a consultation to simplify the UK regulatory regime for Alternative Investment Fund Managers (AIFMs). The proposals aim to remove unnecessary investment barriers and reduce administrative burdens by adjusting regulatory thresholds, with only firms exceeding GBP 5 billion in assets facing full requirements. These changes are expected to save asset managers significant time and resources, impacting hedge funds, private equity firms, and investment trusts.