In a recently issued Consultation Paper, the U.K. Financial Conduct Authority (FCA) presented three sets of proposals for regulating authorized investment funds in the United Kingdom. These proposals consist of rules and guidance necessary to implement changes to the European Directive on Undertakings for Collective Investment in Transferable Securities (UCITS); operation of the new European long-term investment fund vehicle; and other changes to fund regulation that the FCA deems necessary. This article summarizes the changes to the rules and guidance in the FCA Handbook relevant to managers of, and other parties involved with, authorized funds in the U.K., including hedge funds. For a summary of the proposals in the Consultation Paper relating to UCITS management company issues, including remuneration, transparency and whistleblowing requirements, see “FCA Consults on Implementation of UCITS V Provisions Applicable to Managers
,” Hedge Fund Law Report, Vol. 8, No. 36 (Sep. 17, 2015). For more on UCITS, see “UCITS: An Opportunity for Hedge Fund Managers
,” Hedge Fund Law Report, Vol. 2, No. 27 (Jul. 8, 2009); and “Convergence of Hedge Fund Strategies and the UCITS Structure in Europe Mirrors Convergence of Hedge Fund Strategies and Mutual Fund Structures in the United States
,” Hedge Fund Law Report, Vol. 2, No. 37 (Sep. 17, 2009).