Improved regime for AIFMs ahead?

The FCA is seeking early input on its proposed changes to the UK alternative investment fund manager (AIFM) regime.

The Call for Input outlines high-level examples of how the FCA may change the current rules to make them more proportionate to a firm's size and activities.

Proposals include:

• removing the cliff-edge for small AIFMs approaching the full scope regime

  
  

• reducing the need for a depositary

  
  

• using NAV rather than AUM as the basis for determining which version of the regime applies

The paper states that a key aim of the proposals is to remove unnecessary regulation and reduce the administrative burden for AIFMs, making it easier for these firms to grow, compete, innovate and enter the market. However, we have gathered from our early industry discussions that not all firms agree that the new proposals align with this goal. 

For example, AIFMs that are sub-threshold currently but have AUM over £100m are anticipating stricter regulatory requirements than they are currently subject to. 

We encourage all affected firms to review the proposals to identify and flag concerns or unintended consequences to the regulator. Firms have until 9 June 2025 to submit comments and feedback. Adempi will be replying and if you are a client you are welcome to let us know of any concerns and thoughts you might like us to echo when we do.

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 Adempi supports many asset management firms with navigating the AIFMD rules, including registered AIFMs, small authorised AIFMs and full-scope AIFMs.  If you would like help considering how the proposed regime change could affect your asset management firm, you can reach us at contact@adempi.co.uk or on 0203 925 4761.