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Financial regulator looks to update asset management regulation

Emma Lunn
Written By:
Emma Lunn

The Financial Conduct Authority (FCA) is proposing updating regulations for the UK’s asset management industry.

The regulator has published a discussion paper seeking views on how to help the asset management sector innovate, better support investors and boost competition.

The FCA said the UK is a leading centre for asset management, with more than £11tn of assets managed by UK firms.

The Future Regulatory Framework provides an opportunity for the FCA to look to improve asset management regulation with a more modern and tailored regime, better meeting the needs of UK markets and consumers.

The FCA said it will make sure any changes are consistent with international standards and enable technological development and innovation.

The FCA paper published today covers a wide range of ideas, including how it can support firms’ use of technology to improve customer experience and efficiency. It also discusses how the FCA’s rules could be streamlined and improved to help firms deliver better support to investors, retail and wholesale, UK-based and international.

Rules that are fit for the future

Camille Blackburn, FCA director of wholesale buy-side, said: “The UK has an opportunity to update and improve the UK regime for asset management.

“We want to hear from a wide range of voices about how we can enhance the existing standards and what we should prioritise to bring the most benefits to consumers, firms and the wider global economy.

“Given the UK’s leading role as a centre for asset management, we want to make sure our rules are fit for the future. We want a UK wholesale market which supports the economy and is open to innovation, while remaining consistent with high standards of consumer protection and market integrity.”

The regulator has not cemented any new proposals at this stage. It aims to promote further discussion and listen to stakeholders’ views about what it should prioritise.

The FCA requested stakeholders to send comments by 22 May and aims to publish a feedback statement later in 2023, possibly as part of a consultation paper.