View more on these topics

Panel plea as fifth of firms are set to quit

by Paul McMillan

The smaller businesses practitioner panel is calling on the FSA to investigate research suggesting that nearly one-fifth of firms are considering leaving the industry to escape the compliance burden.

The financial services practitioner panel’s survey into the FSA’s regulatory performance and effectiveness found that 17 per cent of IFA principals were considering leaving the industry due to the regulatory environment.

It also found that 86 per cent of firms and 92 per cent of advisers believe the regulatory system places too great a burden on firms.

Small business practitioner panel chairman Mark Rothery says the figures are “startling” and the FSA should conduct thematic work into regulation on small firms.

When asked to estimate the compliance costs as a proportion of total costs, over 10 per cent of smaller retail firms say the proportion is 25 per cent or more.

Rothery says the survey shows a worrying lack of clarity surrounding principle-based regulation, especially considering the regulator’s TCF adviser crackdown next year.

Fifty-seven per cent of smaller retail firms disagree that the FSA has made it clear how principle-based regulation will work in practice while only 36 per cent of smaller retail firms agree that the regulator has provided clear guidelines on how to implement TCF.

Rothery says he is pleased that 68 per cent of respondents say that the FSA’s small firms division has been a positive development, with only 10 per cent disagreeing.

Qualitative research found that the majority of practitioners suggest the FSA should focus on consumer protection, to the detriment of other objectives.

Sixty-four per cent of sma-ller retail firms said the level of regulation in the industry is detrimental to consumer interests.

Rothery says: “The figures for the compliance burden that respondents feel the FSA is placing on them are startling. The regulator needs to conduct some thematic work into this to find out the root cause of their dissatisfaction.”


Defining points

There will be big changes in private, public and state pension provision

Interest rates held at five per cent

The Bank of England has held interest rates at five per cent, following last month’s 0.25 per cent increase.Many commentators had predicted a stable interest-rate environment in December but expect a quarter-point rise early next year.Allianc e & Leicester head of intermediary mortgages Mehrdad Yousefi says: “As expected, the Bank of England has maintained interest […]

A guide to automatic re-enrolment

Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm