The UK's Financial Conduct Authority has proposed reforms to the asset management sector aimed at lowering compliance costs and improving supervision. The changes are expected to generate an estimated £128 million in annual savings, driven primarily by simplified Fund Reporting for Asset Management Entities frameworks. The proposals update rules linked to the Alternative Investment Fund Managers Directive, replacing provisions in place since 2013 with a more flexible, tailored, and proportionate approach while maintaining standards for retail investors. The regulator has also opened a consultation on pay rules for firms regulated only by the FCA, considering removing overlapping remuneration codes and replacing them with a single clearer framework. FCA markets executive director Simon Walls said the proposals would save the industry tens of millions of pounds a year and boost freedom for smaller firms.