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.