The asset management industry has seen numerous mergers, acquisitions, and consolidations in recent years. The complexities of these transactions can provide a myriad of challenges, not least, the requirement for regulatory approval.

As seen in the AIMA journal - Edition 138

A ‘Change in Control’ application is thorough and demands considerable resource and time. Incomplete, or inaccurate, applications can delay the entire process, highlighting just how important it is to get everything lined up from the outset. In this article, we explore how utilising ‘change management practices’, ‘strategic planning’, and ‘proactive measures’ can help you manage, as well as mitigate, risks and unlock the full potential of the combined businesses through a smooth regulatory integration.

Essential to the smooth completion of a transaction are preparation and planning, execution and measurement, and communication and feedback. It is also key to understand how the Financial Conduct Authority (FCA) approaches a Change in Control application and what information they need before approving. When the above considerations are applied to the tasks at hand, challenges can be addressed thoroughly and greater outcomes can be achieved.

The below diagram outlines the four key considerations for successful change management and integration.

Business strategy and vision

The foundation of a successful application to the FCA is the clarity and completeness of the regulatory business plan. The plan should articulate details of the target firm as well as the acquiring firm and, as a minimum, should cover the following key points:

• Background of the target firm in terms of description of business activities, prudential classification, and regulatory permissions.