FT Ignites Europe quotes William Garner on the FCA's approach to founder-led firms

The FCA is placing excessive scrutiny on founder-led asset managers as concerns have been raised over how effectively other board members can challenge founders when they own a sizeable share of the business. 

William Garner, Partner and head of the Financial Services Regulation and Funds group, provides comment for FT Ignites Europe. He suggests that taking a very strict line on founder-led firms risks undermining the FCA's competition mandate.

He says:

"There are real concerns in the market about the dominance of a small number of very large asset managers.

Discouraging competition by targeting founders and owners of independent fund managers will not help encourage competition."

William adds that the FCA must strike a balance between "an individual founder's rights as an equity owner of the business and the board's independence".

"In being critical of the role and influence of founders, there is a clear risk that they are discouraging individuals from setting up independent asset managers in the first place," he says.

Read the full article in FT Ignites Europe here (subscription required).