The UK Financial Conduct Authority has launched a consultation on a package of reforms aimed at cutting costs for the asset management sector.
Proposed changes focus on reporting and remuneration rules
The core of the plan is a simplification of the Fund Reporting for Asset Management Entities (FRAME) framework, which regulators say could generate around £128 million in annual savings. The reforms would replace the current reporting regime with a more streamlined approach that reflects today’s market conditions.
At the same time, the FCA is reviewing remuneration rules that apply only to firms it supervises. It wants to drop overlapping remuneration codes and introduce a single, clearer framework. The regulator stresses that the new system would keep safeguards for retail investors while making the rules easier to follow.
Simon Walls, the FCA’s markets executive director, said the proposals aim to “collect better data while also saving industry 10s of millions of pounds a year.” He added that a focus on proportionality should give smaller firms more flexibility to meet the same high standards.
Impact on supervision and data collection
According to the consultation document, the updated FRAME rules will be “more flexible, tailored and proportionate.” The regulator believes that a proportionate data‑collection model will help it spot risk more effectively without imposing unnecessary burdens on firms.
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In practice, the changes could mean fewer reporting forms and reduced need for detailed disclosures that have been required since the Alternative Investment Fund Managers Directive was first implemented in 2013. The FCA says the revisions will still protect retail investors, a point that has drawn attention from industry groups.
The consultation is inviting comments from asset managers, investors and other stakeholders. Responses will be considered before the regulator finalises the rules.
While the FCA’s plan mirrors earlier efforts to ease regulatory pressure on banks, the scale of the expected savings is larger than many previous initiatives. The focus on proportionality echoes a broader trend among regulators to balance oversight with the need for industry efficiency.
Overall, the proposals represent a shift toward a lighter regulatory touch that still aims to maintain market integrity. The regulator is seeking responses to the proposals before reaching its final decisions. FCA markets executive director Simon Walls said: “By tailoring the regime for UK asset managers, we can collect better data while also saving industry 10s of millions of pounds a year. “With a sharp focus on proportionality, we can particularly boost freedom for smaller firms to find new ways to achieve the same high standards. “Together, the proposals are a practical example of the FCA’s strategy in action: becoming a smarter regulator, which is more efficient and effective, using proportionate data collection to better identify risk.”