Advisers claim they should be paid more for the extra work new regulations are bringing to their companies.
European regulations that were implemented this year, such as Mifid II and Priips, require adviser firms to produce additional reporting on product suitability and build cost disclosure documents to improve transparency for their clients.
Speaking today at Money Marketing Interactive, Susan Hill Financial Planning chartered financial planner Susan Hill says she has not increased costs on the back of new regulations but argues fees should match the extra work she is putting in producing the revamped clients reporting.
She says: “I show clients how much they are paying me through the year and I realise they don’t pay me enough for my work. I am not worried about [regulation] but more on putting together information from providers.
“I use a back office system for cost reporting. There is more work to do, I haven’t increased costs but I should charge more for the extra work I am doing for clients.”
The comments come as Money Marketing and recruitment consultants BWD found that salaries across the advice profession reached record highs in 2017 and are set to increase further in the coming years.
Also speaking on the panel, TCC technical director Philip Deeks says adopting a “bottom up” approach to charges would help advisers justify their costs and demonstrate value for money to clients.
On whether the onerous amount of EU regulations coming to the UK market is effectively going to help clients’ outcomes, Deels said the approach of the UK regulator on transparency is set to better answer the various issues in its market.
He says: “When we look at Mifid II and Priips, they are very prescriptive and focused on disclosure. The FCA is more mature on the broader regulatory piece it is working on, like [the work on] vulnerable clients. Also, on clients outcomes, the FCA is helping more in understanding what is best for clients.”