The U.K.’s Financial Conduct Authority (FCA) and His Majesty’s Treasury (HMT) have undertaken far-reaching and overlapping initiatives with a view to improving the U.K.’s private funds regime while simultaneously reforming or abolishing vestiges of the E.U.’s Alternative Investment Fund Managers Directive following Brexit. On April 8, 2025, HMT issued its consultation (Consultation) and the FCA simultaneously released its call for input (Call for Input). The Consultation focuses on the framework of revising regulations and the relative merits of simplifying the current regulatory framework for alternative investment fund managers (AIFMs) and depositaries, while the Call for Input sets out the FCA’s proposed approach to regulating AIFMs within the revised framework. The comment period for both proposals will remain open until June 9, 2025. Some of the proposed changes would be highly welcome by many regulated entities, including reforms to the U.K.’s outdated classification system that assigns funds to regulatory tiers based on their assets under management. Conversely, some legal experts fault the initiatives for failing to incorporate meaningful provisions to address, for example, a liquidity test more in line with E.U. regulatory priorities than U.K. market realities. This article summarizes aspects of the proposed regulatory initiatives most relevant for PE sponsors and presents commentary from lawyers interviewed by the Private Equity Law Report. See “FCA Identifies Regulatory Priorities for Alternative Investment Managers” (Jan. 26, 2023).