By Rosemarie Connell, Senior Managing Director of Integrated Solutions and Howard Spindel, the senior founding member of the family of firms comprising Integrated Solutions
As investment priorities shift, UK and international financial services firms are increasingly looking across the Atlantic. It’s easy to see why. The U.S. asset management market size is projected to reach USD 71 trillion in 2026, with forecasts of USD 126 trillion by 2031[i]. As the world’s largest and most liquid market, it offers access to institutional capital and long-term growth opportunities beyond those available in domestic or European markets.
For asset managers, brokers, and specialist investment firms, the U.S. appeals not only in its scale but in the strength of institutional investor demand and the breadth of capital allocation. For companies seeking a path to revenue growth and geographic diversification, U.S. expansion could be a timely move, particularly as competition and regulatory pressures intensify across Europe.
Regulatory complexity
Entering the U.S. market though is not without its challenges. One of the most significant obstacles to U.S. market entry is its regulatory structure. Oversight is divided between the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and individual state regulators.
This creates an extremely complex compliance environment, with overlapping reporting obligations, supervisory requirements and governance standards that need to be understood to comply. However, this can be a challenge for non-U.S. firms who often lack in-house expertise to understand these frameworks.
They also must contend with differing governance and reporting standards with processes that are different to what is the norm in the UK or Europe. Plus, there are costs. For example, the New Member Application (NMA) fee structure for FINRA alone ranges from $7,500 to $55,000 depending on the size of the applicant[ii].
It’s therefore essential that companies approach entering the U.S. market with careful planning and a clear strategy in order make the most of the opportunity.
Two ways to enter the U.S. market
There are two different entry routes for UK and European companies to reach U.S. institutional investors, giving businesses the flexibility to choose an approach that fits their ambitions and their appetite for risk.
The first is chaperoning under SEC Rule 15a-6, which allows non-U.S. firms and Approved Persons to work with U.S. institutional clients through a registered U.S. broker-dealer. This route is quick, often letting companies start operating within days, without the need to set up a fully registered U.S. entity. This option is especially useful for companies who want to test the market or build early relationships to give them a chance to understand U.S. dynamics before committing to a full regulatory registration.
The second option is for firms to seek full regulatory registration, which is best suited to those looking for long-term independence and direct access to the market. To do this, they will need to apply for SEC and FINRA authorisation. This process can typically take between four to six months.
In addition, full registration requires companies to demonstrate robust governance, supervisory arrangements, and compliance systems that align fully with U.S. rules. While this route is more resource-intensive, it does give companies greater operational control and flexibility, which is important for those planning a permanent presence.
Ongoing obligations include:
It’s important to remember that getting regulatory approval is just the first step. Companies also face several operational requirements too, including:
- Financial and regulatory reporting such as monthly financial statements under U.S. accounting standards, net capital calculations and periodic filings.
- Registrations and renewals for the firm and its representatives, including regulatory forms, examinations and fidelity bond coverage.
- Anti‑money‑laundering programmes with annual training, independent testing and robust monitoring.
- Supervision and surveillance of staff and client interactions, including retention of business communications.
- Continuing education through mandatory regulatory testing and firm‑specific training.
- Business continuity and disclosures covering privacy notices, customer identification procedures and annual plan reviews.
- Advertising and communications oversight to ensure marketing materials and electronic communications meet regulatory standards.
These requirements highlight why operational readiness is just as important as regulatory approval. Many firms underestimate the day‑to‑day demands of running a U.S. business, particularly the level of documentation and oversight expected.
The right approach makes all the difference
Despite the challenges, the U.S. securities market remains a key strategic destination for UK and international firms. Success, however, requires realistic planning, investment in the right operational foundations and having a clear understanding of regulatory expectations. Firms that make compliance part of their daily operations, anticipate the practical demands of doing business in the U.S., and allow sufficient time for approvals are far better positioned to capitalise on the opportunities the market offers.
Working with advisers who understand both UK and U.S. regulatory regimes can make the transition far smoother, helping firms avoid missteps and reduce the risk of non‑compliance. By combining careful planning, regulatory insight, and the right support, firms can effectively manage the complexities of the market and secure a path to sustainable growth and long-term success.
In collaboration with Rosemarie Connell, Senior Managing Director of Integrated Solutions and Howard Spindel, the senior founding member of the family of firms comprising Integrated Solutions
[i] https://www.mordorintelligence.com/industry-reports/usa-asset-management-industry#:~:text=US%20Asset%20Management%20Market%20Analysis,traded%20funds%20reshape%20fee%20dynamics.
[ii] https://www.finra.org/registration-exams-ce/classic-crd/fee-schedule
