Key Takeaways
- • The FCA and HM Treasury published detailed reform proposals on 14 July 2026 for the UK Alternative Investment Fund Managers Directive (AIFMD), including FCA Consultation Paper CP26/28 and HM Treasury's draft Statutory Instrument with accompanying Policy Note.
- • The reform package includes three concurrent consultations: CP26/28 on AIFMD framework revisions, CP26/27 on remuneration rules for solo-regulated firms, and CP26/26 on a new asset manager reporting regime.
- • The proposals aim to create a more proportionate regulatory framework with differentiated rules for hedge funds, venture capital firms, and other alternative fund manager categories, representing a significant deregulatory streamlining compared to the existing regime.
- • The consultation materials build on earlier FCA Call for Input and HM Treasury Open Consultation launched in spring 2025, signaling an extended policy development timeline for the regime overhaul.
Summary
The FCA and HM Treasury are advancing a comprehensive reform of the UK's regulatory framework for alternative investment fund managers, marking a major overhaul of post-Brexit AIFMD rules. On 14 July 2026, both authorities released detailed consultation documents outlining proposed changes to the registration regime, legislative framework, and compliance requirements governing AIFMs operating in the UK market.
The consultation comprises three parallel initiatives. The primary regulatory reform is captured in FCA Consultation Paper CP26/28, which addresses aspects of the AIFMD framework to be revised or restated under FCA rules. Complementing this, HM Treasury has released a draft Statutory Instrument setting out the new UK legislative framework for regulating alternative investment fund managers, accompanied by a detailed Policy Note explaining the government's rationale. A third consultation (CP26/27) focuses specifically on reforming remuneration codes for solo-regulated firms, while CP26/26 introduces a new reporting regime for asset managers.
The reform agenda reflects a deliberate shift toward proportionality, with the proposed framework establishing differentiated regulatory requirements across hedge funds, venture capital firms, and other alternative fund manager categories. This approach represents a significant deregulatory streamlining relative to the existing regime, aiming to reduce compliance burdens for most UK AIFMs while maintaining appropriate investor protections. The consultation period allows market participants, industry associations, and other stakeholders to provide feedback on the proposed changes before final rules are implemented.
The consultation comprises three parallel initiatives. The primary regulatory reform is captured in FCA Consultation Paper CP26/28, which addresses aspects of the AIFMD framework to be revised or restated under FCA rules. Complementing this, HM Treasury has released a draft Statutory Instrument setting out the new UK legislative framework for regulating alternative investment fund managers, accompanied by a detailed Policy Note explaining the government's rationale. A third consultation (CP26/27) focuses specifically on reforming remuneration codes for solo-regulated firms, while CP26/26 introduces a new reporting regime for asset managers.
The reform agenda reflects a deliberate shift toward proportionality, with the proposed framework establishing differentiated regulatory requirements across hedge funds, venture capital firms, and other alternative fund manager categories. This approach represents a significant deregulatory streamlining relative to the existing regime, aiming to reduce compliance burdens for most UK AIFMs while maintaining appropriate investor protections. The consultation period allows market participants, industry associations, and other stakeholders to provide feedback on the proposed changes before final rules are implemented.
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