The Financial Conduct Authority is working to modernise asset management regulation to serve the needs of the UK market.
In a speech last week, Ashley Alder, chair of the FCA, said he wanted the sector to thrive.
Alder said responses to the regulator's consultation on replacing asset management regulation, currently contained in retained EU law, indicated a desire to remain broadly aligned with EU rules.
He said: "We of course want the UK regime to continue to support high standards and to be interoperable internationally. And we fully recognise the importance of stability, predictability and proportionality, and will only pursue reform where there are clear benefits of doing so."
He said while the FCA works on streamlining the requirements for alternative funds, it is also working on other areas of the asset management sector where different business models straddle both public and private markets.
The FCA chair also touched on environmental, social and governance disclosures and the new labelling regime.
He said any new rules were being created to enable "international interoperability" and the regulator was working with other jurisdictions on this.
Alder concluded: "All this work comes amid a debate about the UK competitiveness, and our role as an organisation having been given a secondary objective to facilitate the international competitiveness and growth of the UK economy.
"At every point in our decision-making process, we consider the options that could advance our primary operational objectives and weigh up which of them could advance growth and competitiveness.
"You can’t grow sustainably without stable markets, and effective competition which raises quality, drives down prices and prompts innovation. Better outcomes for all consumers are good for growth."
The speech titled, our ambitious agenda for UK asset management, was made on Wednesday (May 22) at the Bloomberg Buy-Side Forum in London.
tara.o'connor@ft.com
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