New entrants to the asset management space will not get authorised unless they meet the same high standards as incumbents, the FCA has said as it launches a hub for start-up fund firms.
Earlier this week, the FCA said it would support new entrants to get their FCA permissions through a new suite of services, including pre-application meetings, dedicated case officers and a new website portal.
To foster competition, the FCA wants to give firms better guidance on the application process for firms looking to enter the asset management space.
However, the FCA has restated firmly its position that these firms must still meet “high standards” if the regulator is to give them the green light.
A note from the regulator today reads: “We want to reduce unnecessary barriers to entry and to encourage competition. However, the authorisation hub is not intended to lower entry standards to the market and we do not intend to allow any reduction in quality. New entrants will still need to meet the same high standards as current firms to receive authorisation.”
The FCA also gave further information today on how it plans to expand the hub in 2018, by opening surgeries and online booking for pre-application meetings, as well as publishing more information on entry criteria.