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.