IFAs feel swamped by red tape and increasing volumes of paperwork.
In a survey carried out for Money Marketing by H2B, red tape emerges as the biggest problem IFAs face from the FSA and Financial Ombudsman Service, cited by 77.8 per cent of 1,002 IFAs questioned.
Lack of help over PI insurance, mentioned by 57.3 per cent of IFAs, is the second-biggest complaint over the FSA and FOS.
The Fair Deal for IFAs survey was carried out last month to gauge IFAs' views on the current marketplace.
Fifty-one per cent of IFAs said the lack of a definition for misselling is a big concern while 46 per cent think a lack of direction from the FSA over what is and is not compliant is a big problem.
Aifa director of policy Fay Goddard is not surprised that the burden of regulation is the biggest worry for IFAs. She says: “Every time that the FSA brings in a new requirement, Aifa questions it.
“We need advance warning if people are actually going to be able to extrapolate certain pieces of data from their systems. I would hope that as firms work smarter, they will start to find it easier.”
Michael Philips proprietor Michael Both says: “Increasing regulation is alongside the escalating costs of doing business. The FSA now want us to do compliance returns electronically. In theory, I am keen on making things as simple as possible but I would be petrified that there could be some hiccup completing everything online.”