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The United Kingdom Government plans to remove the rules for private capital and protective funds by introducing an easier regulatory regime for smaller groups to encourage more investment.
The treasure is expected to announce Monday that it is removing the size threshold for which alternative assets managers are subject to the main rules for the sector, from £ 100m under management in 5bn.
A new, less heavy regime will be presented for groups of less than £ 5 billion, for which the treasure hopes to save them time and money and improve the position of the United Kingdom as a predominant center for private capital and protective funds in Europe.
The measure on which the government and the financial behavior authority plan to consult with the industry is likely to be welcomed by many private capital and funding managers. But some in the sector are afraid they may provoke a regulatory reaction from the EU.
“Eliminate costly and duplicative demands will help increase capital flows, strengthen public and private capital markets and innovation innovation,” Rob Hailey said in the managed funds association, which represents many of the world’s largest protection funds.
The work government can also face internal criticism of the move. While ministers have signaled that economic growth is the main advantage, any perceptions that the rules are being diluted to further enrich wealthy funders are likely to angry at work MPs already concerned about the latest well -being cuts that will hit people with disabilities.
FCA is working with the Treasury for the creation of special regulatory regimes that have been adapted for the specific requirements of investment beliefs and capital capital firms.
Emma Reynolds, the city minister, said proposals would mean “disrupting unnecessary investment barriers, such as costly regulation that prevents assets management firms from growing and providing capital for businesses across the country”.
The treasure last month was committed to lowering the overall cost of the red bar for a quarter to boost investment and inject more dynamism into the country’s stagnant economy.
As part of the planned consultation, Treasury and FCA officials are also expected to look for ways to reduce the burden of reporting requirements for alternative fund managers and eliminate overlap with other rules.
“We want rules, best adapted for UK investment managers,” said Simon Walls, the Provisional Executive Director of FCA markets. “These can allow them to act more efficiently, further supporting competition, competition and economic growth.”
The government plans to abolish the legislation of the Investment Fund manager – covering the Entrepreneurship Capital funds, investment companies and real estate funds, as well as private capital and protective funds – which the United Kingdom inherited from the EU.
Instead, officials aim to introduce a simplified regime that covers the discovery, salary, capital, lever, risk management and business behavior that is graduated according to the size of alternative assets.
Michael Moore, chief executive of the Association of Private Capital and Venture Capital, said: “This consultation is an important step in ensuring the United Kingdom Status as one of the leading private capital centers in the world.”
When EU updated its rules for alternative fund managers last year, she was afraid in the industry, it would stop allowing EU funds to delegate many of their activities in the outside bloc, such as the United Kingdom.
After all, Brussels left the delegation rules in the country while tightening the controls and requests of detection on them.
EU rules apply to alternative investment managers with more than € 100 million, or those with more than € 500 million that have no lever and blocking of investors for five years.
Some private capital and funding executives think that the United Kingdom should not dilute its rules for the sector, worrying that this may cause a regulatory response from Brussels and endanger the delegation regime.
UK defensive funds manage £ 355 billion, which is 85 percent of total in Europe, according to the trade body of the Investment Management Association.
The United Kingdom also constituted more than half of € 1.15 of private capital capital under Europe in 2023, according to consultants Arthur D Little.
Additional reporting by Alexandra Heal and Lucy Fisher
