FE fundinfo flags five shifts in asset manager compliance

FE fundinfo has published its Global Regulatory Outlook 2026 for asset managers, outlining five regulatory shifts shaping compliance strategy this year.

The report focuses on changes in retail disclosure, sustainable finance regulation, private market rules and the use of artificial intelligence in compliance. It also reviews developments across the UK, the EU and Asia-Pacific.

One of the most immediate changes is the UK's Consumer Composite Investments regime. From April, firms marketing to UK retail investors begin a 14-month transition from PRIIPs key information documents and UCITS key investor information documents to the new CCI Product Summary, with a final compliance deadline of June 2027.

That leaves limited time for groups that have not yet started the migration. The report argues that disclosure reform is no longer a single-market issue, with managers also needing to prepare for expected revisions to the EU PRIIPs regime in the first half of the year.

Expected EU changes include digital-first disclosures, summary dashboards and revised calculation methods. For managers selling across borders, this adds another layer of operational complexity as UK and EU retail disclosure frameworks continue to diverge.

Sustainable rules

Sustainable finance regulation is another area of uncertainty. Draft SFDR II proposals published in late 2025 would replace the current Article 8 and 9 labels with a new three-tier categorisation system, but key questions remain over naming conventions and whether the framework would be voluntary or mandatory.

That uncertainty comes as firms face rising scrutiny of sustainability claims and product classification. Without final clarity, managers must make decisions on product design, disclosures and distribution while the new regime remains unsettled.

In the Asia-Pacific region, the report points to wider adoption of International Sustainability Standards Board-based reporting. Australia's Sustainability Reporting Standards are entering a broader phase, extending to mid-sized entities and asset owners managing A$5 billion or more, while Singapore is introducing Scope 3 emissions reporting for listed issuers.

These developments suggest sustainability disclosure is becoming more aligned internationally, even as local requirements continue to differ. For global firms, that means balancing an emerging baseline with separate market-specific obligations.

AIFMD II

The report also highlights the arrival of AIFMD II in the EU. The new rules introduce updated requirements for Alternative Investment Fund Managers, including loan origination provisions, liquidity risk management rules and ESG disclosure obligations.

Private market managers will need to review internal processes, fund structures and reporting arrangements. Given the breadth of the changes, AIFMD II is likely to affect legal, compliance, risk and operations teams at the same time.

Alongside the rule changes, FE fundinfo identifies a broader operational shift in how compliance work is handled. Firms are placing greater emphasis on validating data at source so reporting errors are caught earlier, rather than during later remediation.

Artificial intelligence is also being used more widely in compliance monitoring, document production and reporting workflows. But with the EU AI Act reaching full applicability in 2026, firms will need to place greater emphasis on explainability and human oversight when using these tools.

Another theme is the move towards digital-first disclosure. Disclosures increasingly need to be designed for usability and accessibility, whether delivered as PDFs, interactive dashboards or machine-readable feeds, with regulation such as the European Accessibility Act reinforcing that shift.

The report also points to a more fragmented international rulebook. Cross-border managers face overlapping requirements that do not always align, increasing the risk of higher costs, compliance failures and operational disruption.

Operational resilience remains part of that picture, with regulatory frameworks placing greater emphasis on continuity, monitoring and recoverability, building on the introduction of the Digital Operational Resilience Act.

Liam Healy, Chief Executive Officer of FE fundinfo, said: "Something shifted in 2025. The firms pulling ahead weren't necessarily the largest. They were the ones who invested in smarter, more integrated approaches, underpinned by critical end-to-end data infrastructure that connected every part of their operations. They stopped treating each reporting cycle as a standalone event and started embedding regulatory awareness, driven by reliable, high-quality data, into their daily workflows. AI is already significantly increasing productivity across reporting, compliance monitoring and document production. But the real differentiator is the foundation beneath it. Our message to the market is clear: you don't need to rebuild to be ready. You need trusted partners who've invested in the infrastructure and data for tomorrow's outcomes."