The U.K. Financial Conduct Authority (FCA) recently issued a portfolio letter (Letter) to firms in its alternatives portfolio that sets out its supervisory strategy and priorities for alternative investment managers. The Letter is also noteworthy because it portends more vigorous enforcement activity by the FCA, according to Leonard Ng, partner at Sidley Austin. This article details the key takeaways from the letter, with additional commentary from Ng. See “FCA Alert Reminds Custodians and Fund Service Firms of Safeguarding, Servicing and Oversight Duties” (Jul. 14, 2022); and “FCA Details Shortcomings of ‘Host’ Authorized Fund Managers” (August 26, 2021).