Call for Input: Future regulation of alternative fund managers

Read the Call for Input (PDF)[1]

Why we are consulting

Our Call for Input (CfI) accompanies a consultation by the Treasury[2] on its proposed changes to the legal framework. It is intended to give stakeholders clarity about the intended direction of our reforms and an opportunity to comment before we develop detailed rules and guidance for consultation.

We want to make it easier for firms to grow, compete, innovate and enter the market. We also want to protect consumers and encourage firms to manage risks responsibly. This work is part of our commitment to streamline the regulatory regime for asset managers. We believe that clearer rules, better tailored to firms, could create efficiencies in how firms do business and further support economic growth and competition.

Who this is for

This will interest, among others, managers of alternative investment funds and the organisations that provide services to them.

Next steps

Please submit your comments by 9 June 2025.

You can either:

• Submit the form online[3].
• Email your comments to [email protected].
• Write to: Asset Management and Funds Policy Team, Wholesale Buy-side Division, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.

What will we do next

We plan to consult on detailed rules in the first half of 2026, subject to feedback and decisions by the Treasury on the future regime. 

We will also provide more details on the timeline for implementation. 

Broadly, we intend to give firms time to adapt to the new regime, while removing unnecessary rules relatively quickly.

Background

Much of the UK’s asset management regulation is derived from European Union (EU) legislation, including the Alternative Investment Fund Managers Directive (AIFMD). The Treasury has proposed to bring into effect provisions to repeal AIFMD’s firm-facing legislation. Where appropriate, we will replace the relevant legal provisions in our rules. We will also be reviewing our existing requirements for firms.

We want to ensure our approach is proportionate to firms’ size and activities, allowing for growth without sudden or undue regulatory burdens. We want to remove unnecessary regulation and reduce the administrative burden for all AIFMs. We also want a regime that has enough flexibility to allow firms to do business across borders and that is consistent with international standards.