The Managed Funds Association has 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 Managed Funds Association (MFA) has 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.
The MFA stresses that the Discussion Paper – while focusing mainly on the retail sector – raises vital issues for the alternative asset management sector. Given thethe 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.
The 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.
The MFA’s letter puts forward recommendations to modernise and refine the current regulatory framework aimed at helping to “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.
