United Kingdom: Fund Management/ REITs

The United Kingdom’s Financial Conduct Authority has recently (22 July 2026) published its review of financial crime controls across 242 asset management and alternatives firms. The findings reinforce themes from the FCA's February 2025 portfolio letter, which identified anti-money laundering controls in private markets as a supervisory priority.

On 14 July 2026, the UK Financial Conduct Authority (FCA) published CP 26/27, setting out proposals to overhaul the regulatory remuneration framework for solo-regulated firms.

This comprehensive regulatory update examines the latest developments in UK, EU, and US financial services regulation for July 2026, covering critical changes across banking, asset management, insurance, and securities markets. The bulletin highlights significant policy initiatives including the FCA's Consumer Duty enforcement approach, HM Treasury's AI adoption plan for financial services, and proposed reforms to UK asset management regulation. Key international developments include the SEC's proposed expa

The FCA's CP26/27 consultation proposes a fundamental overhaul of remuneration rules for UK AIFMs, MIFIDPRU investment firms, and UCITS managers, shifting from prescriptive requirements to a more flexible, outcomes-focused framework. The proposed changes include narrowing the definition of material risk-takers, providing greater discretion over malus and clawback mechanisms, and consolidating existing remuneration codes into a single framework while maintaining accountability for aligning remuneration with

HM Treasury and the Financial Conduct Authority have published proposals to reform the UK AIFMD regime, introducing a three-tiered approach based on fund size and simplifying regulatory requirements. The changes aim to enhance UK competitiveness while potentially bringing some previously unregulated funds within scope, raising questions about the balance between regulatory relief and new compliance burdens.

Executive Summary: This summary focuses on provisions of the Bill most relevant to investment managers, fund managers and investment advisers.

Investment managers are navigating a transformed fundraising landscape where success depends on more than performance metrics. This analysis examines how product innovation, customised solutions, and alternative capital-raising strategies are reshaping the relationship between managers and investors in an increasingly competitive environment.

The Crime and Policing Act 2026 fundamentally transforms UK corporate criminal liability by changing how organizations can be held accountable for their employees' conduct. Financial institutions face new regulatory thresholds under UK EMIR, while the EU's Digital Operational Resilience Act reveals critical ICT incident patterns across the financial sector.

The Financial Conduct Authority is consulting on significant changes to UK Listing Rules for closed-ended investment funds, proposing new requirements around board independence, substantial shareholder influence, and investment manager fee structures. These modifications aim to strengthen governance protections for investment trusts, particularly when appointing new investment managers or making material changes to investment strategies.