The Financial Conduct Authority has published today a package of potential red tape cutting measures it claims will save the asset management sector £128m a year.
The proposed reforms would potentially cut costs for fund firms and provide improved data to supervise the sector more effectively, the watchdog said today.
Most of the £128m-a-year savings are expected to come from simpler Fund Reporting for Asset Management Entities (FRAME) requirements. These would deliver better data to make regulation more efficient, the FCA said.
The reforms would also “modernise and simplify” the Alternative Investment Fund Managers Directive (AIFMD)-related rules dating from 2013.
According to the regulator, the updated rules would be better suited to today’s UK market and would more flexible, tailored and proportionate, while maintaining clear standards, especially for firms serving retail clients.
A consultation by the regulator will aim to simplify remuneration rules for the relevant firms, ones which are solely regulated by the FCA. The new rules would replace overlapping remuneration codes with a, “clearer, more proportionate framework”, while maintaining appropriate standards and safeguards.
Simon Walls, FCA executive director of markets, said: “By tailoring the regime for UK asset managers, we can collect better data while also saving industry tens 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 inviting feedback on the proposals before making final decisions.
• UK Alternative Investment Fund Managers (AIFM) regime consultation paper – deadline for input 14 October 2026, Solo Remuneration Rules Reform consultation paper – deadline for input of 16 September 2026. The Fund Reporting for Asset Management Entities (FRAME) consultation paper has a deadline for input of 22 September 2026.
• The remuneration 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.
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