FCA Unveils 'FRAME' Reporting Regime for Fund Managers
A new consultation paper introduces a tiered, NAV-based reporting system for UK and third-country AIFMs that will diverge from the EU's AIFMD framework.
The UK's Financial Conduct Authority (FCA) has published a consultation paper proposing a significant overhaul of the reporting regime for asset managers. The new framework, called FRAME (Fund Reporting for Asset Management Entities), would replace several existing returns for UK and third-country Alternative Investment Fund Managers (AIFMs).
The proposal moves from a gross AUM calculation to a Net Asset Value (NAV) threshold of £500 million to determine reporting levels, segmenting requirements into "essential" and "enhanced." This tiered approach, along with a general shift to annual reporting for most funds (quarterly for hedge funds), aims to make compliance more proportionate. However, the new regime also introduces event-based reporting for significant hedge-fund drawdowns, aligning with SEC policy. For third-country managers marketing in the UK, these changes will create a notable divergence from EU AIFMD reporting obligations, ending the ability to simply repurpose EU filings.
The consultation is open for feedback until October 22, 2026, with a final policy statement expected in the first half of 2027. Firms should assess the impact of the proposed changes on their data collection and reporting systems ahead of the planned 2028 implementation.