Regulatory costs have been blamed for the closure of a Norfolk IFA just days after advisers saw their FSCS levies almost double to £100m.
In a statement on its website, Norwich-based advice firm Taylor & Taylor says regulatory changes have made continuing as a business unviable.
It says: “We very much appreciate the support provided by our clients over the years and, while we will immediately cease providing financial advice services, our administration staff will be on hand until 29 May to help clients transition and help keep inconvenience caused by our decision to a minimum.
“We would like to take this opportunity to thank you for your business. This has been a difficult decision for the directors and not one that has been taken lightly.”
The firm has been headed by Russell and Alan Taylor since its creation in 2003 and was approved by the FCA for pensions, mortgages and investments.
Taylor & Taylor’s client book has not been passed to another advisory business and instead product providers have been instructed to correspond directly with clients.
The firm has pledged that all client files will be scanned securely for any future regulatory purposes, with a professional firm brought in to subsequently shred files. It has not been put into default by the Financial Services Compensation Scheme.
Taylor & Taylor could not be reached for comment.
Kingsfleet Wealth managing director Colin Low says: “Increases to regulatory costs should be capped so that they can’t increase so rapidly.”
Basi and Basi Financial Planning managing director Michael Basi adds that regulatory costs can be most burdensome where firms focus on low-value work.
He says: “If you have a niche and you focus on it, the costs are entirely manageable. But practices dealing with a high number of transactions and low-wealth clients may become unsustainable.”