FT Adviser (02/01/2019) – Advisers are both optimistic and wary of the challenges posed by regulation in the financial services industry, an adviser survey has suggested.
In a survey of 200 advisers regulation was listed as the biggest challenge expected to be faced in 2019, followed by cyber security and the prospect of recruiting staff.
The survey, conducted by adviser software firm Intelliflo, also found advisers retrospectively voted regulation to be the biggest challenge they had faced throughout 2018.
However, regulation also featured fourth on advisers’ list of biggest opportunities for the coming year.
Alan Chan, director at IFS Wealth & Pensions, said he agrees that regulation is definitely the biggest challenge for the year ahead.
He said: “No matter how you look at it, what advisers do is constantly changing. There are more and more layers of regulation to comply with than ever before, for instance most recently Mifid II. This drives up operating costs.
“In addition to this, we expect the cost of professional indemnity insurance to rise as a result of increased regulation and scrutiny in the advice market, as well as increased Financial Ombudsman Service compensation limits to £350,000 from 1 April 2019 – all of which will have an adverse impact on the advice market and particularly smaller IFAs.
“Ultimately it will drive up the cost of advice and consumers could be deterred from getting the advice they need.”
Full article link: https://www.ftadviser.com/your-industry/2019/01/02/advisers-see-regulation-as-biggest-challenge-they-face/