Artwork for podcast Alternative Asset Management & Sustainability Insights
Alternative Insights: Regulatory hosting under scrutiny in the UK
Episode 2617th December 2021 • Alternative Asset Management & Sustainability Insights • Travers Smith
00:00:00 00:06:36

Share Episode


For many private fund managers – especially a new firm, a spin out from a larger business, or a firm that manages a relatively small pool of capital – the UK regulatory requirements can be daunting.  Getting the necessary regulatory permissions is an expensive and time-consuming business, especially if there is no certainty that the fundraise will be successful, or if the fee structure leaves little headroom for advisory costs or compliance staff.  The barriers to entry may even be so high that they stifle competition and innovation.

In this scenario, many firms turn to regulatory hosting services.  These are well-established and enable a fund sponsor to enlist a regulated service provider to provide licensing cover for the firm's activities, together with compliance support and oversight. These arrangements are often temporary – to allow a sponsor time to establish its own regulated entity – but can be permanent, especially for smaller fund sponsors.