View more on these topics

Advisers’ regulatory costs hit £475m

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

Advisers’ regulatory costs increased to £475m last year, according to Apfa, heaping more pressure on politicians to ease the burden on the sector.

The Government and the FCA are currently looking at ways to boost access to advice through the Financial Advice Market Review.

An Apfa survey of almost 400 advice firms, published today, lays bare the impact regulation has on the way advisers do business.

Advisers spent, on average, 12 per cent of income on direct and indirect regulatory costs in 2014. If this is extrapolated across the sector – where total revenue was just over £3.9bn last year – advisers spent around £475m on regulation, up from £460m in 2013.

Regulatory costs weigh heavier on smaller firms with revenue below £100,000, according to the trade body, swallowing up some 28 per cent of annual income.

Apfa says it will use the findings to inform discussions with policymakers on easing the regulatory burden for advisers.

Recommended

2

Film scheme investors granted appeal in HMRC tax avoidance ruling

More than 150 investors in film partnership schemes have been granted permission to appeal a High Court ruling which found in favour of HM Revenue & Customs. In July, the court rejected the investors’ attempt to challenge the legality of demands by HMRC to pay disputed tax upfront. The claimants claimed tax relief after investing […]

Zurich-Building-700x450.jpg
1

Zurich confirms non-advised drawdown launch

Zurich will launch a non-advised drawdown product for its workplace saving customers this month. In July, Money Marketing revealed the insurer was preparing to allow over 200,000 members of the occupational schemes it operates to enter a new drawdown product without an adviser. Savers will have to have at least £30,000 to invest in the […]

Woodford-Neil-2014.jpg
1

Woodford hires ex-FBI agent to investigate £16m paper loss

Neil Woodford has hired a former FBI agent to investigate an American drugs developer after claims of financial irregularities pushed him to a $24m (£16m) paper loss. The Times reports that Woodford Investment Management has written to the board of Northwest Biotherapeutics calling on the company to appoint the ex-FBI agent as a non-executive director. […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. So there are firms with 100K turnover paying nearly £30k to the FSCS levy (assuming only c.£1k is the FCA fee)?! Is this true?

    • I think you need to look at total and the impact of regulatory costs, Matt, not just the FCA and Levy bills that drop on the doorstep.

      Personally I worked out 2014 my total regulatory implicit and explicit costs were 23% of turnover, this year I estimate 27%, and based on past data this could rise to 33% over the next 5 years if things remain the same.

      This is not acceptable for my clients to keep paying for this !!

  2. Matt Amber A 3rd December 2015 at 12:09 pm
    I can’t see how that’s possible. However, if someone doesn’t get a grip on these fees I can’t see a lot of smaller companies surviving.

Leave a comment