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What has happened?

In February 2023, the FCA announced in its Discussion Paper DP 23/2 Updating and improving the UK regime for asset management that it is seeking views on what regulatory changes might help the UK’s asset management industry innovate, better support the investors it serves and boost competition.

What are the key points of the DP? 

The DP covers a wide range of ideas, including how the FCA can support firms’ use of technology to improve customer experience and efficiency. It also discusses how the FCA regulations could be streamlined and improved to help firms deliver better support to investors, retail and wholesale, UK-based and international.

The key ideas covered include;

•    Rationalising the FCA regulations to create a common framework that would set standards for all types of asset manager,
•    Amending the regime for authorised funds by reducing or removing the boundaries between UCITS and NURS funds.
•    Amending the AIFM regime, including the registered fund regime,
•    Improving authorised fund managers’ liquidity management arrangements,
•    Improving the standards of investment due diligence required,
•    Reviewing the rules applying o depositaries,
•    Reviewing fund dealing arrangements in the light of the proposed “Direct2Fund” direct dealing model,
•    The ability to issue units and shares in a digital token format,
•    The ability for authorised funds to invest in cryptoassets,
•    A review of authorised fund prospectuses and managers’ reports and accounts, and
•    Improving investor engagement.

The FCA has not confirmed any new proposals at this stage, since it aims to promote further discussion and listen to stakeholders’ views about what it should prioritise. It will consider feedback and publish a feedback statement later in 2023, possibly as part of a consultation paper on some of the discussion topics.

How can we help you?

Thistle Initiatives has supported asset managers with FCA regulations for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, our team of specialists can serve as your right hand in meeting and complying with regulations. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.

Are you looking for help with your fund management regulation arrangements, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 0207 436 0630 or sending an email to info@thistleinitiatives.co.uk.