UK FCA Unveils "FRAME" Reporting Regime for Fund Managers
The UK's Financial Conduct Authority has proposed a comprehensive overhaul of its reporting rules for asset managers, introducing a new regime called "FRAME" that will create divergence from EU requirements.
The UK's Financial Conduct Authority (FCA) has issued a consultation paper proposing a sweeping reform of reporting obligations for asset managers. The new regime, called Fund Reporting for Asset Management Entities (FRAME), would replace several existing returns, including those under the current AIFMD framework, with a new, UK-specific system.
Sophisticated counsel and clients care because the proposal introduces a "proportionate," tiered approach, with "essential," "enhanced," and "event-based" reporting obligations determined by a fund's net asset value (NAV)—a shift from the EU's gross-asset calculation. A key threshold is set at £500 million NAV. This new framework will apply to both UK and third-country alternative investment fund managers (AIFMs) marketing in the UK, creating a significant divergence from EU reporting standards. Managers who previously repurposed AIFMD reports for UK compliance will need to adapt to entirely new requirements.
The consultation period closes on October 22, 2026, with the FCA expecting to publish final rules in the first half of 2027 and implement the new regime in 2028. Asset managers should begin analyzing the draft rules' impact on their compliance systems and consider submitting feedback.