Financial thinktank New City Initiative (NCI) is working with the Financial Conduct Authority (FCA) on the potential creation of a start-up hub for new asset managers.
The Prudential Regulation Authority (PRA) already runs a similar scheme for start-up banks called the New Bank Start-up Unit, which was set up in association with the Bank of England.
This scheme assists newly-launched banks through the early days of authorisation, provides named case officers for firms during the authorisation process, and gives them a greater level of supervisory support and reviews during the early years.
FCA chief executive Andrew Bailey was involved in the creation of this unit in his former role as CEO of the PRA and formally launched the initiative in January 2016.
NCI is now hopeful a similar scheme will be launched for asset managers, having first pushed the issue in its report, How regulation is damaging competition in asset management, published in 2014.
Toby Illingworth, executive director at NCI, said: "Andrew Bailey is very keen to set up a similar scheme for asset managers to ease the burden. We are working on a report which is in the early stages and will look to have something ready by the New Year."
Illingworth highlighted pre-marketing as an area where changes could be made, which he described as a "complete nightmare" for new firms.
Currently, firms are unable to pre-market their business or funds until they have received regulatory approval from the FCA. However, this can take up to a year which means firms have to hold additional capital to sustain themselves until they are authorised.
Another area Illingworth has earmarked for improvement is communication with the FCA, including the appointment of a dedicated representative to help firms with queries.
The Bank Start-Up Unit currently provides new banks with a dedicated helpline and named case officers at the PRA and FCA.
"It would be good to have a designated person to speak to rather than just being referred to a help desk or the FCA handbook," Illingworth said.
Nearly 40 UK asset managers are members of the NCI, including firms such as Polar Capital, Montanaro Asset Management and Somerset Capital Management.
The organisation has been vocal in supporting smaller firms and raising the problems they face regarding barriers to entry and competition.
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