On 20 February 2023, the FCA published Discussion Paper 23/2 ‘Updating and improving the UK regime for asset management’ (DP23/2).

Under the Future Regulatory Framework, the government has proposed making the FCA responsible for those retained EU laws that set requirements for firms. This means the FCA will need to decide whether its rules should in future copy those requirements.

As a first step, the FCA has published DP23/2 to gather a broad range of views about the current UK regime for regulating funds and asset managers. It sets out a range of ideas about how the FCA might modernise and tailor the regime to improve outcomes for UK markets and consumers, and to support the UK’s position as a world-leading centre for asset management. Any changes are intended to be consistent with international standards and to enable technological development and innovation.

Potential changes suggested in the paper include clarifying and enhancing the rules applicable to authorised fund managers and depositaries, improving the rules that apply to funds, and using technology and innovation to support better outcomes from authorised funds.

Alongside DP23/2, the FCA plans to engage with a wide range of stakeholders in forums and roundtables as well as individual meetings. Depending on feedback, it will look at ways to develop some of the ideas covered in the paper using tools such as policy sprints.

The deadline for feedback to DP23/2 is 22 May 2023. A Feedback Statement is planned for later this year, possibly as part of a consultation paper.