Less than half of small firms cite regulation as their main business challenge against three quarters of larger firms, according to Platforum research.
Platforum surveyed 161 advisers with varying levels of AUA, finding regulation continues to be a major business challenge across all firms.
All advice firms have faced increased pressure from regulators this year adjusting to Mifid II and GDPR.
Just 43 per cent of small firms – those with assets under administration of up to £19m – say regulation is their main challenge, however. For firms with £20m to 49m in AUA, the figure jumps to 71 per cent.
Where AUA is more than £250m, 74 per cent of firms find regulation the most major business challenge.
Respondents from large firms say staff numbers make it more difficult to monitor activity of employees. Large firms also say they face more scrutiny than their smaller peers.
Main regulation concerns for advice firms
- Capital adequacy requirements and FCA costs
- Financial Services Compensation Scheme levy
- PI insurance
- Training and competence of advisers and staff