FCA

Financial Conduct Authority (UK)

Medium Impact

FCA consults on consolidated remuneration rules for solo-regulated firms

Published

Jul 13, 2026

Topics

Remuneration, Governance, Conduct risk, Investment firms, AIFMs, UCITS management companies, FCA Handbook

Executive Summary

The FCA has opened consultation CP26/27 on reforming remuneration rules for solo-regulated firms. The proposal would replace the three current remuneration codes for AIFMs, UCITS management companies and MIFIDPRU investment firms with one consolidated code for in-scope firms. The FCA says feedback from firms indicates the current framework is difficult to apply and can impose unnecessary burden, particularly for firms that do not pose systemic risk. The proposed direction is to remove duplication, improve clarity and move away from detailed prescriptive requirements toward an outcomes-focused approach based on governance and accountability. The consultation also affects firms in the same group as at least one in-scope firm type and is relevant to advisers, trade bodies, credit institutions and consumer groups. Responses are due by 16 September 2026. Subject to feedback, the FCA expects to publish a policy statement in Q1 2027 and proposes that the new rules and guidance take effect the day after publication, with AIFM transition staged alongside broader AIFM reforms.

What Changed

modifiedConsolidation of remuneration codes

Separate codes apply to AIFMs under SYSC 19B, UCITS management companies under SYSC 19E, and MIFIDPRU investment firms under SYSC 19G.

New

A single consolidated remuneration code is proposed for in-scope FCA solo-regulated firms.

modifiedShift in regulatory style

The FCA describes the current framework as detailed and difficult to apply, with potential unnecessary burden for non-systemic firms.

New

The proposed regime would focus on remuneration outcomes, firm governance and accountability.

modifiedScope alignment across firm types

Firm type determined which of SYSC 19B, SYSC 19E or SYSC 19G applied.

New

The proposed consolidated approach applies across the in-scope solo-regulated firm population identified in the consultation.

newConsultation and implementation pathway

No CP26/27 consultation process or commencement proposal applied before publication.

New

Feedback is due by 16 September 2026; the FCA anticipates a Q1 2027 policy statement and proposes rules and guidance commence the day after that statement is published.

modifiedAIFM transition sequencing

AIFMs are currently subject to the AIFM remuneration code in SYSC 19B.

New

AIFMs would move to the new framework through a staged transition linked to wider AIFM reform work.

Business Impact

Who is affected

Directly affected

investment firms, alternative investment fund managers, UCITS management companies, and firms in the same group as at least one of those categories.

Indirectly affected

credit institutions, trade bodies, firms’ professional advisers, consumers and consumer organisations.

Jurisdictions

United Kingdom

Business processes

Remuneration policy design and annual review, Board, governing body and committee oversight of pay, Variable remuneration governance and conduct-risk alignment, FCA Handbook rule mapping and compliance monitoring, Group-level remuneration framework assessment, Consultation response management

Estimated effort

Medium

Compliance risk

Medium

Affected Reports

Remuneration policy and governance framework mapped to SYSC 19B, SYSC 19E and SYSC 19GBoard or remuneration committee annual approval packVariable remuneration and conduct-risk alignment control assessmentGroup applicability and entity-scope mapping for solo-regulated firmsCP26/27 consultation response and impact assessment pack

Field	Validation rule
Applicable remuneration code	Current mapping to SYSC 19B, SYSC 19E or SYSC 19G may need to be remapped to the proposed single consolidated code if finalised.
Firm category	Scope assessment should identify whether the entity is an investment firm, AIFM, UCITS management company, or a group firm connected to one of those categories.
Governance and accountability evidence	Policies and control records should be capable of demonstrating remuneration outcomes, governance and accountability under the proposed outcomes-focused approach.
Implementation timing	Planning assumptions should reflect the FCA proposal for rules and guidance to come into force the day after the policy statement is published, subject to final FCA confirmation.
AIFM transition status	AIFMs should track whether staged transition arrangements apply once the FCA finalises CP26/27 and the related AIFM reforms.

Recommended Actions

7 suggested next steps· derived from source analysis

1
AI generatedStep 1 of 7
complete a rule-mapping exercise from SYSC 19B, SYSC 19E and SYSC 19G to identify duplicative, firm-specific and group-level remuneration controls likely to be affected.
2
AI generatedStep 2 of 7
prepare and submit a consolidated response to CP26/27 by 16 September 2026, prioritising areas where the current codes create disproportionate burden or unclear outcomes.
3
AI generatedStep 3 of 7
brief the board, remuneration committee and control functions on the proposed shift toward outcomes-focused governance and accountability.
4
AI generatedStep 4 of 7
review 2027 remuneration-cycle planning for dependencies on a Q1 2027 policy statement and possible commencement the day after publication.
5
AI generatedStep 5 of 7
for groups with multiple FCA-regulated entity types, create a single scope inventory covering investment firms, AIFMs, UCITS management companies and connected group firms.
6
AI generatedStep 6 of 7
AIFMs should monitor CP26/28 alongside CP26/27 to identify staged transition dependencies and avoid duplicative implementation work.
7
AI generatedStep 7 of 7
update compliance monitoring plans to track final FCA rules, guidance, implementation dates and any transitional provisions once the policy statement is issued.

Timeline

publication

Jul 14, 2026

FCA published CP26/27 and opened the consultation on remuneration reform for solo-regulated firms.

consultation deadline

Sep 16, 2026

Deadline for submitting feedback to the FCA using the online response form or cp26-27@fca.org.uk.

other

Date not specified

Subject to consultation feedback, the FCA anticipates publishing a policy statement in Q1 2027.

effective date

Date not specified

The FCA proposes that the new remuneration rules and guidance come into force the day after the policy statement is published.

Sources

AI-generated analysis is based on the following primary sources. Always verify against the official publication.

Consultation paper webpageFinancial Conduct AuthorityJul 14, 2026
CP26/27: Remuneration: Solo-regulated firms’ rules reform ↗
https://www.fca.org.uk/publications/consultation-papers/cp26-27-remuneration-reform-solo-regulated-firms
Handbook rulesFinancial Conduct Authority HandbookDate not specified
SYSC 19B: AIFM Remuneration Code ↗
https://www.handbook.fca.org.uk/handbook/SYSC/19B/
Handbook rulesFinancial Conduct Authority HandbookDate not specified
SYSC 19E: UCITS Remuneration Code ↗
https://www.handbook.fca.org.uk/handbook/SYSC/19E/
Handbook rulesFinancial Conduct Authority HandbookDate not specified
SYSC 19G: MIFIDPRU Remuneration Code ↗
https://www.handbook.fca.org.uk/handbook/SYSC/19G/

Related Evidence

Verified source support for this analysis

The evidence agent checks whether the drafted finding is supported by official publications and relevant public source material.

Receive updates like this by email

Get AI-generated analysis for the regulators and topics you care about.