Alternative investment fund managers in the UK have a new date to watch: 14 July 2026, when the FCA and HM Treasury signalled that the AIFMD-derived rulebook governing the sector is finally being rewritten. Unusually for regulatory reform, the proposals appear designed to lighten the load on compliance teams rather than add to it.
HM Treasury published a draft statutory instrument, the Alternative Investment Fund Managers Regulations 2026, alongside a policy note on 14 July, said Leo RegTech.
Leo RegTech recently discussed how the FCA just rewrote the rulebook for AIFMs, and for once, the firm claims it sees it as good news.
The FCA simultaneously released three consultation papers covering the AIFM regime, fund reporting, and remuneration, marking the most significant overhaul of the UK’s AIFM framework since it was transposed from EU law in 2013.
The consultations close between September and October 2026, with final Handbook rules expected in 2027 and full implementation pencilled in for 2028. The FCA notes that UK asset managers oversee almost £2trn in alternative assets and more than £16trn in total assets under management, underlining the scale of the market affected.
Two changes stand out. First, the FCA is targeting a roughly 75% cut in reporting burden by replacing the AIFMD Annex IV return with FRAME (Fund Reporting for Asset Management Entities), a UK-built framework consulted on separately in CP26/26 and designed to scale with firm size rather than applying a one-size-fits-all template.
Second, the current two-category split between full-scope and sub-threshold AIFMs will become a three-tier structure based on funds’ net asset value rather than assets under management. Firms managing less than £750m in NAV would be classed as small AIFMs, a higher threshold than originally proposed, meaning more firms should land in the lighter-touch tier.
A less-discussed detail sits in CP26/28’s delegation section: a proposed “additional core AIFM functions” category covering third-party valuation, compliance monitoring, and AIF marketing, which would become easier to delegate. Liability stays with the AIFM and written agreements remain mandatory, but the FCA is explicitly acknowledging that many smaller and mid-sized managers already outsource compliance oversight to hosting platforms.
Nothing changes immediately. Firms have until October for feedback, with CP26/26 and CP26/27 closing in September. In the meantime, three steps are worth taking before autumn: mapping fund NAV against the £750m threshold to gauge likely tier, starting a preliminary FRAME gap analysis against current Annex IV reporting, and revisiting delegation agreements covering compliance monitoring to ensure they align with the FCA’s proposed approach.
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