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FCA proposes streamlined rulebook for asset managers
14 July 2026 UK
Image: ARMMYPICCA/stock.adobe.com
The UK’s Financial Conduct Authority (FCA) has put forward a package of reforms intended to custom requirements proportionately for asset managers, reduce costs for companies, and provide enhanced data for more effective supervision of the sector.
The financial watchdog says the updated rules would deliver £128-million-a year in savings, with a substantial portion of the cost reduction coming from simpler Fund Reporting for Asset Management Entities (FRAME) obligations.
The FRAME guidelines would be designed around the particular conditions of the UK industry, giving improved data to enhance the regulation’s efficiency.
The package would also streamline and revise the Alternative Investment Fund Manager Directive (AIFMD)-related rules introduced in 2013.
The FCA says the guidelines would be modernised to fit the current UK market, be more flexible, tailored, and proportionate, while continuing clear standards, particularly for firms serving retail clients.
The regulator is also seeking feedback on a simplified remuneration regime for relevant companies, who are entirely regulated by the FCA, by overturning overlapping remuneration codes with more coherent and proportionate guidelines, while maintaining adequate standards and safeguards.
The FCA has opened consultation for each proposal and is welcoming feedback before final decisions are reached.
Simon Walls, executive director, markets at the FCA, comments: “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.”
Romin Dabir, partner at Reed Smith, remarks: “These proposed changes to the rules that apply to asset managers are aimed at introducing a more flexible, proportionate regime in relation to becoming authorised in the first place and then the ongoing reporting and remuneration requirements that apply.
"Many of these areas have been criticised for some time so these proposed changes are likely to be helpful, particularly for smaller firms and those entering the market for the first time.”
Rob Hailey, managing director, head of Europe, Middle East and Africa Government Affairs, Managed Funds Association, adds: “The proposed reforms recognise that alternative investment funds can achieve strong risk management and investor protection standards without unnecessary operational complexity.
"This will allow firms to direct more resources toward serving investors and providing capital to UK markets.”
The financial watchdog says the updated rules would deliver £128-million-a year in savings, with a substantial portion of the cost reduction coming from simpler Fund Reporting for Asset Management Entities (FRAME) obligations.
The FRAME guidelines would be designed around the particular conditions of the UK industry, giving improved data to enhance the regulation’s efficiency.
The package would also streamline and revise the Alternative Investment Fund Manager Directive (AIFMD)-related rules introduced in 2013.
The FCA says the guidelines would be modernised to fit the current UK market, be more flexible, tailored, and proportionate, while continuing clear standards, particularly for firms serving retail clients.
The regulator is also seeking feedback on a simplified remuneration regime for relevant companies, who are entirely regulated by the FCA, by overturning overlapping remuneration codes with more coherent and proportionate guidelines, while maintaining adequate standards and safeguards.
The FCA has opened consultation for each proposal and is welcoming feedback before final decisions are reached.
Simon Walls, executive director, markets at the FCA, comments: “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.”
Romin Dabir, partner at Reed Smith, remarks: “These proposed changes to the rules that apply to asset managers are aimed at introducing a more flexible, proportionate regime in relation to becoming authorised in the first place and then the ongoing reporting and remuneration requirements that apply.
"Many of these areas have been criticised for some time so these proposed changes are likely to be helpful, particularly for smaller firms and those entering the market for the first time.”
Rob Hailey, managing director, head of Europe, Middle East and Africa Government Affairs, Managed Funds Association, adds: “The proposed reforms recognise that alternative investment funds can achieve strong risk management and investor protection standards without unnecessary operational complexity.
"This will allow firms to direct more resources toward serving investors and providing capital to UK markets.”
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