MFA submitted a letter to the UK Financial Conduct Authority (FCA) recommending reforms to streamline the UK’s investor categorisation framework. The letter is in response to the FCA consultation paper on the Markets in Financial Instruments Directive (MiFID). These proposed changes aim to modernize outdated rules that currently prevent investors from accessing alternative investment funds in the UK–despite being able to invest in these asset classes elsewhere.
MFA’s recommendations focus on simplifying the rules that currently burden investors and asset managers. The key proposals include:
- Create a unified professional client opt-up process for both MiFID and non-MiFID activities.
- Update the professional client opt-up criteria.
- Harmonize the definition of large companies that qualify for either categories.
