The FCA's Future Regulation of Alternative Fund Managers Call for Input

Last week the FCA published its rather grandly titled Call for Input on "Future regulation of alternative fund managers".

In summary, it foreshadows only a modest set of changes. It does not signal an ambitious break from the UK from the EU derived regulations governing alternative asset managers, borne out of 2011's Alternative Investment Fund Managers Directive ("AIFMD"), but rather, in the FCA's own words, it is simply "retaining – but substantially improving – the existing regime". Indeed, large asset managers "would be subject to a regime like the current rules for full-scope UK AIFMs".

Admittedly, however, the Call for Input is expressly preliminary in nature and limited in scope. The FCA does not consider much of the substance of the rules to which managers are presently subject (e.g. on remuneration, reporting and their prudential position), deferring that work to a later consultation.

There is intended to be a full Consultation Paper in the first half of 2026. We will therefore have to wait to see if the FCA has any bolder ambitions for the regulation of the sector.

Its focus in the Call for Input is primarily on who is within scope of asset management regulation and to what extent.

We discuss the Call for Input in more detail here.