The Association of Professional Financial Advisers has warned advisers are spending three working days a year meeting regulatory reporting requirements at a total industry cost of over £10m a year.
It says it is concerned about how much time advisers have to spend in complying with retail mediation activity return requirements, given the impact of the RDR and the wider economic environment on adviser revenues.
Policy director Chris Hannant says: “We support a drive towards greater transparency, but this will not be achieved by the unthinking collection or publication of more and more data with no clear aim. We need to be sure that what the FCA is asking advisers to provide is used by the FCA, especially given the time it takes to compile the information.”
From July, advisers will be required to complete more detailed information in their RMAR. Two new sections, K and L, will require firms to collect data on adviser charging and consultancy charging.
Section K requires firms to provide details of initial and ongoing charges, and “regular instalments as a proportion of the total due”.
Charges information will need to be split according to whether advice is independent or restricted, and whether the cost of advice is billed directly to clients or facilitated through providers or platforms.
Back office software providers have warned about these increased requirements for advisers.
Intelliflo marketing director Peter Jordan says: “It is clearly a large increase in the amount of information advisers have to supply and in order for advisers to make sure they provide the right information to the FCA, they are going to need a system which can complete this information efficiently and with the least amount of constraint on their time.”
Thomas and Thomas Financial Services managing director Darren Lloyd Thomas says: “Apfa may have underestimated the time it takes, I would say advisers are losing two weeks a year completing these returns.”