IFAs shoulder a heavier burden of regulation than any other small
business, claims the Institute of Directors as it publishes its quarterly
The IoD says not only do IFAs have to deal with the same regulations as
other small businesses, such as administering Government initiatives,
payroll tax and working tax credits for their own employees but they also
face all the compliance issues of being regulated by the FSA.
Deputy head of the policy unit Richard Baron says the average small
business owner spends 15 per cent of their working week complying with
But he estimates the time spent by IFAs on regulatory issues must be
considerably higher than those operating in other sectors of industry.
Baron says the time spent is a shocking waste and calls on the Government
to take action to cut down on the amount of red tape.
Baron says: “IFAs are particularly hard hit because not only do they have
to deal with the regulation that applies to every other small business but
they also suffer industry-specific regulation as well. The Small Business
Council has emphasised the effect of the cumulative burden of regulation.
IFAs must know this better than anyone.”
Aifa director general Paul Smee says: “The FSA must constantly be aware
that it must take the special needs of small businesses into consideration.
Regulation must not dictate that only large businesses can survive.”