UK regulator unveils reforms to cut compliance costs and streamline reporting for asset management firms by £128m yearly.
The UK’s Financial Conduct Authority has proposed reforms to reduce compliance costs for asset managers by an estimated £128m annually. The changes focus on simplifying the Fund Reporting for Asset Management Entities framework, aiming to improve oversight while lowering expenses for firms.
The proposals include updates to rules tied to the Alternative Investment Fund Managers Directive, which have remained largely unchanged since 2013. The FCA described the revisions as more flexible and tailored to current market conditions, while maintaining safeguards for retail investors.
Alongside the reforms, the regulator is consulting on pay rules for FCA-only regulated firms, seeking to replace overlapping remuneration codes with a single, clearer framework. Responses to the proposals are being sought before final decisions are made.