The number of finance professionals setting up their own investment management businesses is growing, according to Laven Partners.
The management consultancy has seen a 40% increase in demand for its FSA application services this year, as more investment professionals strike out on their own.
It says the number of authorization applications the FSA is currently processing provides evidence of the growth in newly established funds.
In 2007, investment managers were typically authorized within three to six weeks whereas now, firms are being told by the FSA that as applications are piling up, the average processing time is approaching 12 weeks.
Jérôme de Lavenère Lussan, CEO and Founder, says: "We are...seeing a trend for traders from banks to launch new businesses, indicating a renewed optimism in the prospects of the hedge fund sector, coupled with concerns about remuneration levels within banks.
"Many traders working as the number 2 or 3 portfolio manager in a fund feel that now is the time to strike out on their own."
Laven Partners is an investment management group offering consultancy services, including fund structuring, tax, legal and compliance services to fund managers, as well as independent operational due diligence and advisory services to investors.
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