AIMA welcomes the Financial Conduct Authority (“FCA”) proposed changes to the rules for UK asset managers as well as the more proportionate way in which they will have to report data in future. AIMA supports the new approach of having three categories of managers and tailoring the rules to their size and the types of funds they run. The FCA has also recognised AIMA’s long standing concern that the way in which leverage is calculated does not give a meaning full picture.

In its responses (FCA CP 26 28 & FCA CP 26 26) FCA to the two FCA consultations, AIMA has identified some issues which need to be amended for the reforms to have their maximum intended effect. AIMA is cautioning that some changes to legal definitions may have unintended consequences and unintentionally harm the UK’s competitiveness as a global fund hub for no sound regulatory reason. The FCA should also look again at how assets are counted so that only activities by the manager itself are used to decide their size. The FCA should also avoid unnecessary prescription in the way some private assets are valued.