UK Regulatory Catch-up: summer 2026 

Earlier this summer, most European firms were consumed with finding their path to a radical, template-free investor disclosure model. Then, the UK authorities unleashed a torrent of additional reforms to the post-Brexit framework.  Here’s a summary of key developments and impact. 

1. HMT/FCA consultations: UK-AIFM regime  

On 14 July, both HM Treasury (HMT) and the Financial Conduct Authority (FCA) launched parallel consultations on the UK Alternative Investment Fund Managers (AIFM) regime.  

a) HMT consult on UK AIFM law 

HMT intends to simplify the UK AIFM legal framework, enabling a more proportionate regime for UK firms.  Key changes include removing existing AIFMD thresholds and reforming registrations; in future, the largest AIFMs will face the most prescriptive rules. 

Current AIFMD reporting requirements will also be replaced; the FCA will acquire rule making powers to “establish a simplified, coherent reporting regime for all asset managers”, including non-UK firms within the National Private Placement and Overseas Funds Regimes (NPPR, OFR). 

HMT’s consultation closes on 14 October; finalized UK-AIFM laws are expected “early 2027”. 

b) FCA consult on new detailed regime 

The FCA’s 344-page ‘UK AIFM Regime’ consultation paper [CP26/28] complements HMT’s draft changes.   

A legal instrument (p.149-344) creates the new Alternative Investment Funds Sourcebook (ALTS), with a three-tier AIFM regime (based on net asset value) and rules on leverage, risk management, liquidity and UK firms’ delegation arrangements. 

Other changes cover closed-ended funds, NPPR and cross-border marketing rules; a new fund manager prudential regime would be extended to UCITS firms. The FCA states modified regime ‘investor disclosures’ require specific fund information “beyond” the Consumer Composite Investments product summary document (CCI-PSD). They also confirm HMT “will revoke the AIFMD reporting requirements”, with the proposed replacement covered in a separate CP (see next item). 

CP26/28 also closes on 14 October; the FCA aims to publish final rules in 2027 and implement the revised regime in 2028; certain requirements may be withdrawn, sooner. 

2. FCA also consult on new UK supervisory reporting 

The FCA also unveiled details of their future Fund Reporting for Asset Management Entities (FRAME) model. 

CP26/26 contains two separate draft legal instruments; firstly, Appendix 1 (p.115-179) creates a new local FRAME periodic reporting regime, with specific data required from all fund firms.  

The two-tier threshold-based model requires: 

• ‘Essential reporting’ [NAV < GBP 500m]: general information and common “critical data”; 
• ‘Enhanced reporting’ [NAV > GBP 500m]: additional granular data points, per specific fund type. 

Reporting frequency depends on specific fund type (depicted p.6, p.11-12); most information is required quarterly, although performance data and benchmark returns may be required monthly.  

Three templates were also published to illustrate the proposed data collection, alongside an online version of ‘essential reporting’ for firms to test. The FCA may retain both current online form and XML upload options. 

Elsewhere, a second draft legal instrument (Appendix 2, p.180-234) amends specific Fund Authorization, Registration and Change Processes. The FCA say making better use of FRAME reporting data requires these submissions “to be made through digital forms that capture structured fund information”, replacing email-based submissions. Their phased roll-out relates to: 

• Certain amended AIFM notifications: to commence “as a first step, later this year”; 
• New expanded AIFM notifications: implemented during 2028. 

The FCA also proposes to remove the CCI-PSD filing requirement (i.e. as both a transitional provision and ongoing obligation). 

CP26/26 is open until 22 September, although feedback on the revised online submission processes is requested before end-August. The FCA plans to publish final rules in 2027 and implement the new reporting regime in 2028; some elements may be introduced earlier “depending on firm readiness”. 

3. ‘Consumer Investment Disclosures’ CP closing soon 

The FCA’s consultation on ‘Simplifying Consumer Investment Disclosures’ started on 2 July. 

CP26/24 covers modified UK-MiFID cost and charges disclosure rules, aligned with the new UK-CCI regime and Consumer Duty standards. 

Firstly, the FCA proposes amended MiFID Cost and Charges disclosures: 

• Pre-Sale: ongoing product and service costs presented as a headline number; other cost items shown separately; 
• Post-Sale: continued reporting of a single total of all costs actually incurred, with reasonable estimates allowed if exact figures “disproportionately difficult” to obtain; 
• Cumulative effect illustrations: removed, firms to show how costs have impacted returns in regular post-sale reporting; 
• Only explicit product transaction costs are included in disclosures (as per UK-CCI). 

This requires a two-stage transition period: 

• TP1 [Dec 2026 – 7 June 2027]: CCI-PSD early adopters may use current or new UK-MiFID cost disclosure rules. KIDs/KIIDs must use existing calculations. 
• TP2 [8 June 2027 – June 2028]: firms may use either the new COBS 6A rules or transitional rules. 

The FCA also accepts the UK-CCI regime transition is “a significant operational undertaking”, given the aim to “support consumer understanding, rather than completing prescribed templates”.  To address concerns, they plan to amend CCI transition provisions. Where manufacturers adopt CCI-PSDs early, distributors may continue supplying existing KIIDs/KIDs until 8 June 2027. The FCA also say existing KIIDs/KIDs need not be updated during the transition (unless material changes occur) but must remain publicly available. 

CP26/24 will close on 21 August 2026, with finalized rules expected end-2026. 

4. FCA Consumer Duty consultation still open  

We can’t lose sight of the FCA’s ongoing dialogue on local ‘Consumer Duty scope and proportionality’. 

CP26/23 aims to make ‘the Duty’ more targeted, proportionate and predictable, without weakening consumer protection. Most of the document is revised ‘non‑Handbook guidance’, including a new chapter: ‘3A Firms’ roles and responsibilities across the distribution chain’. 

The FCA also explains the interaction between the Duty and UK-CCI. Although they verify CCI regime disclosure compliance will be the “primary means” of meeting the Duty's consumer understanding outcome, firms must remain aware of “the full range of steps required” (e.g. the Duty obligation to “test communications”).  

This paper remains open for comment until 18 September 2026, with a new Consumer Duty policy statement scheduled for Q1-2027. 

5. Other FCA summertime reading 

On 13 August, the FCA finalized local fund liquidity risk management legal rules; meanwhile, many other consultations remain open, e.g. ‘Solo-regulated firms’ Remuneration rules’ (i.e. closing 16 September). 

Moreover, new Consumer Duty advice covers Products and Services, the ‘Support’ outcome, ‘Fair Value’ assessments and ‘Consumer outcomes monitoring’. 

6. UK-CCI transition latest 

Aside from concerns that further UK divergence from the EU model creates additional complexity for cross-border firms, recent FCA activity may also complicate their UK-CCI changeover efforts. 

• FRAME reporting [CP26/26]: mid-way through the transition period, some may question the FCA’s suggested removal of the CCI-PSD filing requirement. The FCA assumes new FRAME reporting will “replicate the information obtained through assessing changes” to fund CCI-PSDs; at this stage, others may doubt if fledgling “template-free” CCI disclosures can fully reconcile with the data items now specified in the draft FRAME reporting template tabs. 
• Simplifying Consumer Investment Disclosures [CP26/24]: the option for firms not to revise ‘alternative disclosure documents’ ahead of the 8 Jun 2027 deadline recasts the core basis of many firms’ interim plans for annual updates (including UCITS-KIIDs before 19 Feb 2027). 
• ESG disclosures: last month, the FCA closed another consultation on simplified climate product-reporting requirements; they explain that products in both CCI and SDR scope, can “disclose materially relevant climate risks and/or opportunities as part of the risk and return information within a product summary”. As before, there is no mention of what ‘sustainable’ EU-UCITS within the OFR (i.e. SFDR article 8/9 products) may provide in their CCI-PSDs. 
• CCI-PSD / factsheet “merging”: the FCA reportedly confirmed that CCI-PSDs can be “merged” with fund factsheets, enabling firms to take a more adaptable approach to investor disclosures. However, experts warn of major complications, given these documents have differing legal purposes and review/update cycles. 
• Core information disclosures: firms within UK-CCI scope should recall their obligation to make underlying ‘core information disclosures’ available to distributors as a machine-readable file (i.e. “in good time” before a product is made available for retail investment). There remains little official guidance on how this requirement can be practically met.   
• Industry template expectations: CP26/24 also increases FinDatEx’s burden to ensure its revised European MiFID template (EMT) effectively covers both pre-existing CCI legal rules and draft MiFID cost & charges disclosures (i.e. during the FCA’s extra phased transition); meanwhile, stakeholders await the draft EMT to appear, alongside confirmation if any CCI-PSD data will form part of an updated European PRIIPs template (EPT). 
• Consumer Duty alignment: a reminder the FCA stated they’d “deliver the CCI regime through a hybrid approach” utilizing both standardized CCI rules and Consumer Duty obligations. Hence, they now “rely mostly on the Consumer Duty for the design and delivery of disclosures”.  
• Other key factors: the FCA pledged to consult “in early 2026” on amended COBS 4 past performance presentation rules, to align with the UK-CCI regime.  However, this remains unpublished.  

Otherwise, as the transition deadline approaches, firms should bear in mind the FCA’s current expectation that the new CCI-PSD should demonstrate “improved consumer readability and intelligibility”, compared to UCITS KIIDs and UK-PRIIPs KIDs.  Time will tell. 

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