Strengthening the role of alternative asset managers will support UK economic growth
London, UK — MFA made three recommendations to enhance the UK’s economic growth and competitiveness in a letter to the UK Government ahead of the Autumn Budget 2025 statement. The targeted reforms aim to strengthen the UK’s position as a global hub for alternative asset management and improve capital markets for investors, businesses, and savers.
“Alternative asset managers are an important engine of the UK economy,” said Jillien Flores, MFA Chief Advocacy Officer. “They provide capital to growing businesses, and help institutional investors, such as pensions and endowments, diversify their portfolios and achieve strong returns. Updating UK regulations empowers alternative asset managers to invest, innovate, and create jobs, driving national growth and competitiveness.”
MFA’s specific recommendations are:
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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.
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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.
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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.
Read the full letter here.
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
