LONDON – Managed Funds Association (MFA) today submitted a letter to the Financial Conduct Authority (FCA) backing the regulator’s efforts to modernise the UK asset management regulatory landscape and promote more competitive UK capital markets. The letter is a formal response to the FCA’s Discussion Paper on updating and improving the UK regime for asset management.
MFA stresses that the Discussion Paper—while focusing mainly on the retail sector—raises vital issues for the alternative asset management sector. Given the critical role of the industry in underpinning UK capital markets, MFA emphasises that pragmatic changes to the asset management regulatory framework will help ensure that the UK remains a world-leading financial centre.
“We applaud the FCA for exploring a robust modernisation of the UK’s regulatory framework,” said MFA President and CEO Bryan Corbett. “Targeted reforms to make UK capital markets more attractive, efficient, and competitive will enhance the ability of alternative asset managers to deliver for their investors, including pension funds. Integrating these reforms with focused adjustments to critical tools such as short selling will enhance the UK’s competitiveness internationally. We look forward to continuing to work with the FCA and other partners as they work to reshape the UK capital markets landscape.”
MFA agrees with the Discussion Paper’s objective to better accommodate the needs of various investor categories, including domestic, international, retail, and professional. Removing harmful inconsistencies among frameworks while maintaining differentiation between investor types will limit unnecessary costs while maintaining investor protections. MFA also noted the FCA’s acknowledgment that any regulatory overhaul should be interoperable with standards in other jurisdictions.
MFA’s letter puts forward recommendations to modernise and refine the current regulatory framework. These targeted adjustments will help promote open, efficient, and competitive UK capital markets to the benefit of consumers, investors, and other market participants. MFA’s letter also highlights several key areas the FCA should further explore as it continues the consultation process, including short selling, securitisation, and sustainable disclosure requirements.
MFA’s full letter to the FCA is available here.
About the Global Alternative Asset Management Industry
The global alternative asset management industry, including hedge funds, credit funds, and crossover funds, has assets under management of £3.2 trillion (Q4 2022). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets.
About the Managed Funds Association
Managed Funds Association (MFA), based in Washington, DC, New York, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 170 member firms, including hedge funds, credit funds, and crossover funds that collectively manage nearly £1.7 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time.