Although alternative investment fund managers with under ₤1 billion ($1.34 billion) in assets under management (AUM) may not command the same name recognition and clout as the biggest players in the U.K. private funds market, they account for a very large and growing portion of it. According to the U.K. Financial Conduct Authority (FCA), the nearly 1,000 such firms that it oversees collectively have roughly ₤220 billion ($296 billion) AUM using a diverse range of investment strategies and business models. However, those emerging managers also present certain regulatory compliance and investor protection challenges. In the results of its three-phase survey (Survey), the FCA raised concerns about emerging managers’ approaches to high-risk investments, conflicts of interest, onboarding of retail customers and other issues. The FCA criticized widespread compliance failures and called for extensive changes to emerging managers’ market practices. This article summarizes the FCA’s findings and presents expert legal commentary and analysis on the Survey, including its place within the larger context of recent FCA rulemaking efforts and guidance. See “Planting a Seed or Securing an Anchor: Finding Success As an Emerging Manager” (Nov. 14, 2024); and “Challenging Fundraising Outlook for PE and VC Offers Unique Opportunities for Private Credit and Emerging Managers” (May 2, 2024).