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.
"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).