The U.K. Financial Conduct Authority (FCA) recently issued a portfolio letter (Letter) to firms in its alternatives portfolio that sets out its supervisory strategy and priorities for alternative investment managers. The Letter is also noteworthy because it portends more vigorous enforcement activity by the FCA, according to Leonard Ng, partner at Sidley Austin. This article provides key takeaways from the Letter, with additional commentary from Ng. See our two-part series: “Enhanced Warnings and Other Obligations From the FCA’s New U.K. Rules on Marketing High‑Risk Investments” (Dec. 1, 2022); and “Standards and Requirements Under the FCA’s New U.K. Consumer Duty Rules” (Dec. 15, 2022).