Trade body Libertatem is encouraging its members to contact their local MP to make them aware of how regulation affects advisers.
According to Libertatem director general Garry Heath, the trade body has members with offices in 160 UK constituencies, including those of Prime Minister Theresa May and Chancellor Philip Hammond.
As part of its “surgery campaign” launched last week, Libertatem wants members to approach their local MPs to raise awareness of the reasons they think financial regulation is not working for advisers or consumers.
In a factsheet it wants members to give to MPs, Libertatem says regulatory costs for its average member have increased from £4,200 in 2010 to £22,000 this year and now account for a quarter of a client’s advice bill.
Libertatem also sets out a how it thinks the Financial Services Compensation Scheme should be funded.
The document says: “There are more than 16 million potential claimants on the FSCS scheme. But their compensation is being charged to only six million active clients. That is unsustainable.”
It adds: “The obvious solution is a charge on all investments introduced by advisers over the years. This would ensure that all 16 million clients paid their share of the cost not just the six million currently advised.”
Heath says Libertatem’s membership is currently in the “many hundreds” and is close to 1,000. The majority of members are small IFA firms with less than five advisers.