Prince Harry and Meghan Markle reportedly appealed for their new team of staff to be run completely separately from Buckingham Palace.
A source told the newspaper: "They wanted their household to be entirely independent of Buckingham Palace, but were told 'no.'
"There is an institutional structure that doesn't allow that kind of independence. The feeling is that it's good to have the Sussexes under the jurisdiction of Buckingham Palace, so they can't just go off and do their own thing."
Harry and Meghan, who are expecting a baby in April , will begin work with their new staff in the spring.
The couple have already made progress in hiring new members of staff. Their new Head of Communications is Sarah Latham, who worked as Hillary Clinton's Senior Campaign Advisor during her 2016 presidential election campaign.
She also worked with Bill Clinton at the White House in the late 1990s. She was Deputy Assistant to the president and Deputy Director of Scheduling from 1996 to 2000.
Buckingham Palace declined to comment when contacted by INSIDER.