CFA UK report: Investment start-ups struggle to succeed

2017 and 2018 weak years for start-up activity

Barriers to entry for new investment firms are low, but barriers to success are high, according to a report from CFA UK published today (4 November).

The report, Start-ups in UK Asset Management: A Study of Barriers to Entry & Success, follows the publication of the FCA's Asset Management Market Study, which also found that barriers to entry in the sector are relatively low. The CFA UK report focused on the five-year track record of start-ups in the retail investment market, and how easily they can establish profitable and successful operations. Analysis of data logged by the European Securities and Markets Authority (ESMA) from the start of 2014 to the end of 2018 found that over 1000 new start-ups were authorised by the FCA "to c...