FCA Proposes FRAME Reforms to Cut Asset Management Red Tape

Central to the proposal is the introduction of simplified Fund Reporting for Asset Management Entities (FRAME) requirements, which the regulator expects will account for the bulk of the projected savings. Beyond reporting, the FCA intends to update rules linked to the 2013 Alternative Investment Fund Managers Directive and consolidate overlapping remuneration codes into a single, clearer framework. Simon Walls, the FCA’s executive director of markets, stated that the shift toward proportionality will grant smaller firms greater freedom to meet high standards without unnecessary process-heavy constraints.

The Independent Investment Management Initiative, an industry think tank, backed the move, emphasizing that the current regime often fails to account for the varying scale and risk profiles of different market participants. By reducing administrative friction, the initiative suggests managers can redirect their focus toward client outcomes. The regulator is currently soliciting industry feedback on the proposed changes before finalizing the new standards.