RegulationOct 16 2017

FCA launches fund manager nursery to shake-up market

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FCA launches fund manager nursery to shake-up market

The Financial Conduct Authority (FCA) has today (16 October) launched a programme to help new entrants into the UK asset management market.

The launch follows on from the publication by the FCA of the Asset Management Market Study, which found that competition in the asset management sector is “weak.”

To disrupt the market and improve competitiveness, the regulator has put together a "hub", consisting of materials on the FCA website and in the regulator's handbook.

It will also run seminars for prospective new entrants on what would be expected of them, and each firm seeking to become authorised will have a dedicated caseworker and pre-application meetings as they work with the regulator to become authorised. 

"This will make it easier for firms to understand how the FCA works, make a complete submission, and transition from our authorisation to supervision regime," the FCA stated.

Future phases will feature open days and surgeries for firms.

The FCA revealed it regulated 300 new asset management firms in the 2016 calendar year.

The principal objectives of the new hub, according to the regulator, are to clarify expectations - and support firms with better guidance on regulations and processes.

It also aims to make information easier to access via a dedicated portal for investment managers on the FCA’s website.

Finally the regulator wants to foster better engagement between the FCA and new entrants, and provide end-to-end support for firms moving through the start-up cycle.

Megan Butler, executive director of supervision for investment, wholesale and specialists, said the asset management sector is important for the UK economy.

“We want to aid new entrants to the market and the hub will help new firms understand us better as an organisation.”

Commenting on the launch, Jake Green, regulation partner at law firm Ashurst, said: "This will surely be welcomed and should lead to a far more efficient and practical process.

"This is more similar to how the CSSF and Central Bank (Ireland) address applications and while no system is perfect, this must be viewed as a step in the right direction for both industry and the FCA in terms of its expertise and experience."

David.Thorpe@ft.com