Regulatory Forward Look 2026
FCA 2026 Priorities: AIFMD, Client Categorisation and Conflicts
2026 marks a transformative year for UK fund and investment managers, with sweeping regulatory changes impacting both retail and wholesale markets. The new UK Prospectus Regime, effective from January, modernises capital-raising and disclosure requirements, streamlining processes for fund launches and secondary offerings.
Alongside this, the FCA’s Consumer Composite Investments (CCI) rules introduce an outcomes-focused disclosure regime, replacing PRIIPs and UCITS templates, and requiring all firms to provide clear, comparable product summaries and machine-readable data for retail investors. Private markets face heightened scrutiny, with the FCA’s ongoing review of conflicts of interest expected to drive enhancements in governance and transparency.
Private markets face heightened scrutiny, with the FCA’s ongoing review of conflicts of interest expected to drive enhancements in governance and transparency. Fund managers should also prepare for strengthened liquidity risk management rules, including enhanced anti-dilution tools and annual effectiveness reviews for authorised funds. These changes are designed to protect investors and ensure robust market functioning, with consultations and new rules rolling out throughout 2026.
Other key developments include the simplification of MIFIDPRU “own funds” requirements, permanent EMIR margin exemptions for certain derivatives, and the introduction of entity-level Sustainability Disclosure Requirements (SDR) for firms managing over £5bn. The FCA is also focusing on client categorisation, non-financial misconduct, and targeted support for retail investors, with new rules and guidance coming into force across the year.
To remain compliant and competitive, investment managers must review and update their policies, procedures, and training in line with these evolving standards. Proactive engagement with regulatory consultations and readiness for enhanced disclosure, governance, and AML/CTF controls will be essential for success in the UK’s dynamic regulatory environment in 2026.
