MFA shared three recommendations to the UK Government on enhancing economic growth and competitveness ahead of the Autumn Budget 2025 statement. MFA’s specific suggestions are as follows:
- Simplify reporting requirements to enhance international competitiveness.
- The Financial Conduct Authority (FCA) should eliminate duplicative MiFID transaction reporting requirements by moving to single-sided reporting. This would reduce unnecessary costs for firms and investors, improve data quality, and make UK markets more efficient.
- Modernise the regulatory framework for asset management.
- The Government and regulators should align the Alternative Investment Fund Managers Directive (AIFMD) and MiFID regimes, recalibrate capital requirements to reflect that investment firms do not pose a systemic risk, and update AIFMD reporting to focus on information relevant to systemic risk. These changes will promote more competitive capital markets.
- Safeguard the contribution of alternative asset managers to the economy.
- The Government should ensure proportionate regulation and tax treatment of nonbank financial intermediaries. Imposing bank-style macroprudential rules or discriminatory tax measures on investment firms would harm the UK’s competitiveness and discourage global capital flows.
