Travers Smith's Alternative Insights: UK AIFMD Review – the FCA misses its shot

At Brexit, the UK assimilated applicable European Union financial services measures into UK law. The then Conservative UK government decided that these needed to be transitioned out of UK law and into the Financial Conduct Authority Handbook, so that the regulator could amend them over time. The current Labour government has continued this policy.  The FCA is now reviewing each legacy EU financial services measure and adapting it. Although it is now 10 years since the Brexit vote, the UK remains in the early stages of this process.  The FCA's new proposals for alternative investment funds form part of this review.  

In July, the UK's Financial Conduct Authority published its proposals to adapt the legacy Alternative Investment Fund Managers Directive (AIFMD) for the UK. The reforms arrive at a moment when Britain is hungry for growth and keen to attract global private capital. The FCA had a chance to be bold. It missed the opportunity.