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Apfa launches second ‘cost of regulation’ survey

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Apfa has launched its second “cost of regulation” survey as the Government prepares to investigate the operation of the advice market.

The survey aims to record both direct and indirect costs on Apfa members. Last year’s study found that smaller firms were spending on average 12 per cent of their income on compliance and regulation, with 3 per cent on direct fees and 9 per cent on indirect costs.

In total, Apfa reported that the sector spent £460m on regulation, with the average client paying £170 per year.

Apfa director general Chris Hannant says: “In a year which has seen recent increases in the levies placed upon advisers for the FSCS and FCA, as well as changes to Mifid II and elsewhere, it is vital that we have reliable and up to date figures on the true cost of FCA supervision to properly hold the FCA to account.

“We appreciate that people will need to collect the information required for the survey, but with HM Treasury and the FCA seemingly in ‘listening mode’ with the FAMR, we strongly urge the industry to get involved.”

The relaunch of the survey comes after the Treasury and the FCA revealed plans to probe the advice market, including questioning how the cost of regulation was affecting the availability of services to the wider public.

The survey can be accessed here.

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Comments

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

  1. I completed this survey this morning and read in press releases this morning that regulation costs could be over 20% !! (mine will be nearing 17% based on nett income after taxes and including my PI which has more than doubled over the past year or two ! but this doesn’t include “time” spent on regulatory matters)

    Very worrying ? as there also seems to be a few “I’m alright jackers” so screw the rest of you, still out there ? all I will say to that is, when the FCA have drunk all the beer and wine at our pub….. they “WILL” frequent yours !

  2. The only ones who are getting pi&##d are us advisers!

  3. There APFA goes again, beating its puny chest with another meaningless sound bite (replete with split infinitive), namely “to properly hold the FCA to account”. In what way? We’re already way past all that. The government is about to embark on its own review of the extortionate costs and other burdens of regulation and the barriers they pose to a practical and affordable framework within which people can obtain quality advice. What is yet more data gathered by yet another APFA survey likely to add to the agenda of this review?

    It’s just another project to create an impression that APFA’s actually doing something. But it isn’t really. It’s just more talk.

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