FCA Consults on Three-Tier AIFM Prudential Regime as Part of Asset Management Reform (CP26/28)

The FCA published CP26/28, proposing a three-tier, NAV-based prudential regime for alternative investment fund managers (AIFMs): Small (under £750m), Medium (£750m-£5bn) and Large (over £5bn), each with simplified valuation and leverage requirements scaled to firm size. It is one of three linked consultations published the same day, alongside CP26/26 and CP26/27, that the FCA estimates could together deliver roughly £128 million in annual industry savings as part of a wider asset management simplification programme.

• Proposes a three-tier NAV-based AIFM regime: Small (<£750m), Medium (£750m-£5bn), Large (>£5bn)
• Simplifies valuation and leverage requirements scaled by firm size tier
• Published alongside linked consultations CP26/26 (fund reporting) and CP26/27 (remuneration)
• Part of a package the FCA estimates could save industry approximately £128 million annually