FCA consults on overhaul of AIFM regime

The FCA has published a consultation on new rules for the AIFM regime,

Key proposals include:

• Replacing the current EU-derived framework with a more proportionate UK-specific regime;
• Introducing a new three-tier AIFM categorisation based solely on net asset value (NAV);
• Applying valuation rules to all AIFMs and removing the currently statutory external valuer model;
• Removing prescribed gross and commitment calculations;
• Introducing proportionate risk and liquidity management requirements depending on fund type, leverage and AIGM size;
• Removing the requirement for FCA approval when investment management is delegated to unauthorised entities (but retaining notification requirements); and
• Streamlining annual reporting and investor disclosure requirements, with more flexibility for professional investors and stronger protections for retail investors.

The consultation closes on 14 October 2026.

The FCA is also consulting on simplifying the remuneration regime for solo-regulated firms and consolidating the reporting regime for asset managers.