Support for the retail distribution review has fallen by nearly a quarter in two years, according to a Financial Services Practitioner Panel industry survey.
The survey, which compiles responses from 4,256 regu- lated firms, shows only 47 per cent welcome the initiative, down from 60 per cent two years ago.
Fourty-four per cent of retail firms now welcome the RDR, compared with 59 per cent two years ago.
Three-quarters of whole- sale firms say the initiative is welcome, up slightly on the 72 per cent who welcomed it two years ago.
Sixty-eight per cent overall say compliance costs have increased and 60 per cent say costs have become excessive, with retail and small businesses particularly feeling that regulatory pressure has gone too far.
Nineteen per cent of res- pondents say the regulator handled the financial crisis effectively and only 30 per cent say the coalition Government’s plans to break up the FSA will be a solution.
Financial Services Practit-ioner Panel chairman Iain Cornish says: “This survey recog- nises the importance of strong and cost-effective regulation. It also highlights areas where regulation could be more effective. it is important that the views of regulated firms are listened to as well as the views of consumers, the media and politicians.”
True Bearing IFA Julie Bayley says: “The original RDR goals were laudable but its implementation is undermining confidence in the review and the future of advisers.”