There was also feedback on whether non-UCITS funds might be rebranded to help rationalise the regime, and if so, how best to do this.
Speaking at the Investment Association's annual dinner on Wednesday (11 October), chair Ashley Alder laid out the regulator's three main priorities for reform on the back of feedback received on its discussion paper for a post-Brexit UK asset management regime.
These include making the regime for alternative fund managers more proportionate, updating the regime for retail funds and supporting technological innovation.
For alternative fund managers, the chair said the FCA had received calls from the industry to retain the core framework of the Alternative Investment Fund Managers Directive (AIFMD), while making it more proportionate and tailored to the UK market.
FCA sets out ideas for post-Brexit rules of UK asset management sector
Alder said industry members had pointed to practical issues caused by the full AIFMD regime only applying to firms above a threshold of assets under management. Instead, the FCA will aim to use a set of «consistent rules» across all managers of alternative funds.
«Rather than having two different categories of manager and applying different rules to each, we would ensure the regime operates proportionately depending on the nature and scale of a firm's business,» he said.
«So, we will work with the Treasury to explore how to make regulation work far better for small registered, small authorised and full scope managers.»
The regulator is also considering modifications to the AIFMD to enable full-scope alternative fund managers to carry out other activities within the same legal area, as well as easing some reporting requirements.
Respondents also called for a
Read more on investmentweek.co.uk