Advisers have warned that more compliance is making their job harder, with many spending most of their time on paperwork instead of helping clients, according to research from Unbiased Pro.
Research found that Consumer Duty was the toughest regulation for advisers right now.
One in three picked this as their biggest challenge.
One in five said FCA reporting and compliance was the hardest, while 13% chose ‘Know Your Customer and Anti-Money Laundering requirements’.
Another 13% said fees and transparency rules were the most difficult, and only 2% said data privacy.
Many advisers said regulation was stopping them from doing their main job.
One adviser said they spend 95% of their time on paperwork, with just 5% left for clients.
Regulation also came top when advisers were asked what they would change about the industry.
Some advisers said they felt like regulators saw them as a “problem” rather than a way to close the UK’s financial advice gap.
Many called for less unnecessary compliance, saying it adds little value and confuses clients.
Matt Cockayne, chief revenue officer at Unbiased Pro, said: “Financial advisers play a critical role in closing the UK’s financial literacy gap, yet they’re being held back by red tape.
“Compliance is essential, but it should enable, not obstruct, the delivery of quality advice.
“Smarter, more streamlined regulation is the key to ensuring advisers can focus on what matters most: helping people make confident financial decisions.”
