March 2024
The FCA has published an interim update (PDF169 KB) to its 2022 and 2023 portfolio letters for alternative and mainstream asset managers respectively. The letter flags its upcoming areas of supervisory focus (areas where it will be scrutinising firms’ practices), and its policy priorities (areas it will prioritise in terms of new rules and regulatory change).
While many of the themes are carried over from previous letters, of particular interest are new areas of emphasis. These include the fair value of services provided to unit-linked funds, the management of regulatory change, and confirmation of a review of private asset valuation.
The FCA has not provided updates on some priorities set out in its previous letters (such as CASS, financial resilience, and market abuse), but these are likely to remain ongoing areas of focus in day-to-day supervision.
This article summarises the FCA's key focus areas and provides practical next steps for asset managers.