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Avoid these common errors in Asset Management authorisation


The FCA has published a list of common issues with applications between April 2023 and April 2024 in a bid to reduce delays and improve the chances of a successful application for those wishing to operate in the asset management sector.

Longer timeframes for approving applications were largely based on their completeness and clarity. During the timeframe mentioned above, 18% of applications were withdrawn or rejected due to the poor quality of information and the following concerns:

  • Senior management lacking competence and experience for the functions they applied for.
  • A misunderstanding of the ‘Location of Offices’ threshold condition.
  • An inability to identify and propose an effective risk management framework.
  • For those intending to deal with retail clients, being unable to demonstrate how to apply the Consumer Duty.
  • A misappreciation of outsourcing responsibilities.
  • A failure to identify and suggest how conflicts of interest will be managed.
  • Inappropriately seeking exemptions from schemes which protect consumers.
  • Not being ready, willing, or organised.

According to the FCA, addressing these points correctly will not only increase the chances of authorisation, and improve the timeframe in which that occurs, but also ensure there is a strong, viable regulatory framework in place from day one.

At Thistle, we have experts who have experience in these areas and would be able to assist your firm throughout the authorisation process.