The UK Government is consulting on proposals to amend legislation relating to managers of Alternative Investment Funds
A consultation has been launched to simplify regulation for Alternative Investment Fund Managers (AIFMs).
It will be focused on removing unnecessary barriers to investment which will save asset managers time, money and resource, while freeing them to help the UK’s businesses scale up, grow and create jobs.
Background to the consultation
Currently, businesses face a suite of new regulatory burdens once they hold 100 million Euros in assets, which can discourage some of them from growing and financing more investment across the country.
This means smaller asset management businesses immediately have to sign up to the same rules as the biggest businesses once they reach this threshold, bringing about large costs.
The consultation aims to create a more graduated regime, where only the largest businesses, with the value of over £5 billion, are subject to the full scope of requirements, with the majority of businesses subject to much less prescriptive rules, helping to reduce administration costs.
Consultation outcomes
This consultation will provide hedge funds, private equity businesses, and investment trusts the opportunity to contribute to the development of a more streamlined regulatory environment.
Once the consultation has concluded, feedback from the asset management sector will be used to design draft legislation which will then be shared with asset management businesses next year.
The consultation closes on Monday 9 June 2025.
Find out more and respond to the Alternative Investment Fund Managers Regulations consultation.
First published 8 April 2025
