The panels that advise the FCA have told it that ‘regulatory overload’ is an issue for firms.
The regulator has four expert panels that advise the FCA on issues affecting groups including small businesses, markets and consumers.
Responding to the annual reports of the panels today, the FCA noted that “regulatory overload” was identified as a key theme across the panels.
The panel that represents smaller businesses, which was formerly chaired by IFA Association director Clinton Askew, said that firms were receiving too many data requests, and that the FCA should conduct a more rigorous cost benefit analysis before it launches significant work.
The FCA says: “We recognise that the volume of regulatory change can put pressure on firms’ resources. We have a thorough Business Planning process which prioritises our work according to where we can have the most impact. We publish these priorities in our annual Business Plan. Our Mission also provides further detail on how we focus our resources to reduce harm, advance our objectives and deliver the greatest public value.
“As we have moved to a more sector-based approach to our work, we now have better oversight of all individual projects covering each sector. So we will try to ensure that, as far as possible within our remit, we can reduce the cumulative impact of our regulatory requirements on firms.”
The FCA listed financial advice as one of its key work streams in response to its advisers, saying that it was progressing the recommendations of the Financial Advice Market Review.
The FCA’s consumer panel urged the FCA to continue to monitor the robo-advice market for risks.
The regulator says: “When we are aware that firms are not complying with our rules on advice, we will take relevant supervisory action.”