Skip to content

The FCA addresses the AIF and NURS regimes

What has happened? 

In October 2023, the FCA announced, in a speech given to the Investment Association, that it has three main priorities for AIF and retail fund reform, namely:

  • making the regime for alternative fund managers more proportionate,
  • updating the regime for retail funds, and
  • supporting technological innovation.

What are the key points of the announcement?

The regime for alternative fund managers

The FCA would like to apply a set of consistent rules across all managers of alternative funds. Rather than having two different categories of managers and applying different rules to each, it would like to ensure that the regime operates proportionately, depending on the nature and scale of a firm’s business. The FCA intends to work with the Treasury to explore how to make regulation work better for small registered, small authorised, and full-scope AIF managers.

Respondents to the FCA also highlighted that AIFMD prevents full-scope alternative fund managers from carrying out other activities within the same legal entity. Given the complexities this can result in, the FCA is also considering modifications in this area.

The AIFMD currently requires AIF managers to report to regulators when a fund is newly established, when there are any material changes to a fund, when there is an acquisition or disposal of major holdings, and in relation to the control of non-listed companies. The FCA is considering whether changes could be made to ease some of these requirements on the basis that the cost of compliance may not be proportionate to the benefits of this type of reporting.

Updating the regime for retail funds

The FCA has considered feedback about the way in which some funds are regulated like alternative investment funds, where in principle only retail rules should apply. This points to a far clearer distinction between the requirements applied to managers of authorised retail funds and managers of alternative investment funds. The result should simplify the retail rules for non-UCITS (NURS) funds.

There has also been feedback on whether non-UCITS funds might be rebranded to help rationalise the regime, and if so, how best to do this. The FCA will continue to explore this option and welcomes further dialogue on branding options.

The FCA will consult on amending the AIFMD regime and re-evaluating the AIFMD rules for non-UCITS retail funds in 2024, and in 2025 will review the regulatory reporting regime.

How can we help? 

Thistle Initiatives has supported AIFM firms 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 FCA 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 AIFM or NURS compliance arrangements, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to