diff --git a/funding/manager.go b/funding/manager.go
index edd6b5f5f..3701cff7a 100644
--- a/funding/manager.go
+++ b/funding/manager.go
@@ -516,11 +516,6 @@ type Config struct {
 	// transition from pending open to open.
 	NotifyOpenChannelEvent func(wire.OutPoint)
 
-	// UpdateForwardingPolicies is used by the manager to update active
-	// links with a new policy.
-	UpdateForwardingPolicies func(
-		chanPolicies map[wire.OutPoint]models.ForwardingPolicy)
-
 	// OpenChannelPredicate is a predicate on the lnwire.OpenChannel message
 	// and on the requesting node's public key that returns a bool which
 	// tells the funding manager whether or not to accept the channel.
@@ -3246,28 +3241,6 @@ func (f *Manager) addToRouterGraph(completeChan *channeldb.OpenChannel,
 		return ErrFundingManagerShuttingDown
 	}
 
-	// The user can define non-default channel policies when opening a
-	// channel. They are stored in the database to be persisted from the
-	// moment of funding the channel to it being confirmed. We just
-	// announced those policies to the network, but we also need to update
-	// our local policy in the switch to make sure we can forward payments
-	// with the correct fees. We can't do this when creating the link
-	// initially as that only takes the static channel parameters.
-	updatedPolicy := map[wire.OutPoint]models.ForwardingPolicy{
-		completeChan.FundingOutpoint: {
-			MinHTLCOut: ann.chanUpdateAnn.HtlcMinimumMsat,
-			MaxHTLC:    ann.chanUpdateAnn.HtlcMaximumMsat,
-			BaseFee: lnwire.MilliSatoshi(
-				ann.chanUpdateAnn.BaseFee,
-			),
-			FeeRate: lnwire.MilliSatoshi(
-				ann.chanUpdateAnn.FeeRate,
-			),
-			TimeLockDelta: uint32(ann.chanUpdateAnn.TimeLockDelta),
-		},
-	}
-	f.cfg.UpdateForwardingPolicies(updatedPolicy)
-
 	return nil
 }
 
diff --git a/funding/manager_test.go b/funding/manager_test.go
index c1fc17a81..685d49f20 100644
--- a/funding/manager_test.go
+++ b/funding/manager_test.go
@@ -252,7 +252,6 @@ type testNode struct {
 	testDir         string
 	shutdownChannel chan struct{}
 	reportScidChan  chan struct{}
-	updatedPolicies chan map[wire.OutPoint]models.ForwardingPolicy
 	localFeatures   []lnwire.FeatureBit
 	remoteFeatures  []lnwire.FeatureBit
 
@@ -381,9 +380,6 @@ func createTestFundingManager(t *testing.T, privKey *btcec.PrivateKey,
 	publTxChan := make(chan *wire.MsgTx, 1)
 	shutdownChan := make(chan struct{})
 	reportScidChan := make(chan struct{})
-	updatedPolicies := make(
-		chan map[wire.OutPoint]models.ForwardingPolicy, 1,
-	)
 
 	wc := &mock.WalletController{
 		RootKey: alicePrivKey,
@@ -541,11 +537,6 @@ func createTestFundingManager(t *testing.T, privKey *btcec.PrivateKey,
 			return nil, nil
 		},
 		AliasManager: aliasMgr,
-		UpdateForwardingPolicies: func(
-			p map[wire.OutPoint]models.ForwardingPolicy) {
-
-			updatedPolicies <- p
-		},
 	}
 
 	for _, op := range options {
@@ -570,7 +561,6 @@ func createTestFundingManager(t *testing.T, privKey *btcec.PrivateKey,
 		testDir:         tempTestDir,
 		shutdownChannel: shutdownChan,
 		reportScidChan:  reportScidChan,
-		updatedPolicies: updatedPolicies,
 		addr:            addr,
 	}
 
@@ -651,12 +641,11 @@ func recreateAliceFundingManager(t *testing.T, alice *testNode) {
 		UpdateLabel: func(chainhash.Hash, string) error {
 			return nil
 		},
-		ZombieSweeperInterval:    oldCfg.ZombieSweeperInterval,
-		ReservationTimeout:       oldCfg.ReservationTimeout,
-		OpenChannelPredicate:     chainedAcceptor,
-		DeleteAliasEdge:          oldCfg.DeleteAliasEdge,
-		AliasManager:             oldCfg.AliasManager,
-		UpdateForwardingPolicies: oldCfg.UpdateForwardingPolicies,
+		ZombieSweeperInterval: oldCfg.ZombieSweeperInterval,
+		ReservationTimeout:    oldCfg.ReservationTimeout,
+		OpenChannelPredicate:  chainedAcceptor,
+		DeleteAliasEdge:       oldCfg.DeleteAliasEdge,
+		AliasManager:          oldCfg.AliasManager,
 	})
 	require.NoError(t, err, "failed recreating aliceFundingManager")
 
@@ -1145,21 +1134,6 @@ func assertChannelAnnouncements(t *testing.T, alice, bob *testNode,
 			}
 		}
 
-		// At this point we should also have gotten a policy update that
-		// was sent to the switch subsystem. Make sure it contains the
-		// same values.
-		var policyUpdate models.ForwardingPolicy
-		select {
-		case policyUpdateMap := <-node.updatedPolicies:
-			require.Len(t, policyUpdateMap, 1)
-			for _, policy := range policyUpdateMap {
-				policyUpdate = policy
-			}
-
-		case <-time.After(time.Second * 5):
-			t.Fatalf("node didn't send policy update")
-		}
-
 		gotChannelAnnouncement := false
 		gotChannelUpdate := false
 		for _, msg := range announcements {
@@ -1188,34 +1162,24 @@ func assertChannelAnnouncements(t *testing.T, alice, bob *testNode,
 					minHtlc = customMinHtlc[j]
 				}
 				require.Equal(t, minHtlc, m.HtlcMinimumMsat)
-				require.Equal(
-					t, minHtlc, policyUpdate.MinHTLCOut,
-				)
 
 				// We might expect a custom MaxHltc value.
 				if len(customMaxHtlc) > 0 {
 					maxHtlc = customMaxHtlc[j]
 				}
 				require.Equal(t, maxHtlc, m.HtlcMaximumMsat)
-				require.Equal(t, maxHtlc, policyUpdate.MaxHTLC)
 
 				// We might expect a custom baseFee value.
 				if len(baseFees) > 0 {
 					baseFee = baseFees[j]
 				}
 				require.EqualValues(t, baseFee, m.BaseFee)
-				require.EqualValues(
-					t, baseFee, policyUpdate.BaseFee,
-				)
 
 				// We might expect a custom feeRate value.
 				if len(feeRates) > 0 {
 					feeRate = feeRates[j]
 				}
 				require.EqualValues(t, feeRate, m.FeeRate)
-				require.EqualValues(
-					t, feeRate, policyUpdate.FeeRate,
-				)
 
 				gotChannelUpdate = true
 			}
diff --git a/server.go b/server.go
index ff8738edf..206ab43f1 100644
--- a/server.go
+++ b/server.go
@@ -1459,9 +1459,8 @@ func newServer(cfg *Config, listenAddrs []net.Addr,
 		RegisteredChains:              cfg.registeredChains,
 		MaxAnchorsCommitFeeRate: chainfee.SatPerKVByte(
 			s.cfg.MaxCommitFeeRateAnchors * 1000).FeePerKWeight(),
-		DeleteAliasEdge:          deleteAliasEdge,
-		AliasManager:             s.aliasMgr,
-		UpdateForwardingPolicies: s.htlcSwitch.UpdateForwardingPolicies,
+		DeleteAliasEdge: deleteAliasEdge,
+		AliasManager:    s.aliasMgr,
 	})
 	if err != nil {
 		return nil, err