Podcast Episode 26: UK AIFMD Reform, Regulatory Divergence, and the Future of Private Markets

The conversation also explores increasing regulatory scrutiny of private markets, particularly around valuation, liquidity and conflicts of interest. William and Brian consider the expansion of private assets into private wealth and retail channels, and how regulators can balance growth and competitiveness with effective investor protection.

Key takeaways include:

• The FCA’s proposed UK AIFMD reforms would introduce a more proportionate, three-tier regime for UK managers of alternative funds based on the net asset value of their funds under management.
• The UK can respond to market developments more quickly than the EU, but divergence may create additional disclosure and compliance burdens for cross-border managers.
• The delegation model and national private placement regime remain important to the UK’s position as an international centre for investment management.
• Growth and innovation in private equity and private credit are increasing regulatory attention on valuation, liquidity, leverage, governance, conflicts and data.
• Wider access to private markets requires suitable product design, transparent disclosure, strong distribution controls and meaningful investor protection. Whether you are an alternative investment manager, institutional investor, legal or compliance professional, or private markets participant, this episode offers a clear overview of the regulatory changes shaping the UK and European alternatives industry.