The U.K.’s Financial Conduct Authority (FCA) and His Majesty’s Treasury (HMT) have undertaken far-reaching and overlapping initiatives with a view to improving the U.K.’s private funds regime while simultaneously reforming or abolishing vestiges of the E.U.’s Alternative Investment Fund Managers Directive following Brexit. On April 8, 2025, HMT issued its “Regulations for Alternative Investment Fund Managers” (Consultation), and the FCA simultaneously released its “Call for Input: Future regulation of alternative fund managers” (Call for Input). The Consultation focuses on the framework of revising regulations and the relative merits of simplifying the current regulatory framework for alternative investment fund managers (AIFMs) and depositaries, while the Call for Input sets out the FCA’s proposed approach to regulating AIFMs within the revised framework. The comment period for both proposals ended on June 9, 2025. Some of the proposed changes would be highly welcome by many regulated entities, including reforms to the U.K.’s outdated classification system that assigns funds to regulatory tiers based on their assets under management. Conversely, some legal experts fault the initiatives for failing to incorporate meaningful provisions to address, for example, a liquidity test more in line with E.U. regulatory priorities than U.K. market realities. The article summarizes aspects of the proposed regulatory initiatives most relevant for PE sponsors and presents commentary from lawyers interviewed by the Private Equity Law Report. See “U.K. FCA Emerging Managers Survey Urges Broad Changes to Curb Retail Market Abuses” (Jul. 24, 2025).