Compliance outstrips client charging as main adviser concern

315 advisers ranked their biggest business challenges and compliance/RMAR reporting was number one, with around a quarter (24%) putting this on their list. Client charging came fifth, with 11% of the vote.

Since the FCA introduced the requirement for advisers to provide data on payment methods into RMAR reporting last year, many have complained about the additional time burden it creates. The recent announcement by the FCA that it will make changes to the reporting to “make it easier” for advisers is a step in the right direction but advisers fear the time it will take to understand and adapt to new requirements.

Lisa Jones, from independent financial adviser firm Hargreaves & Jones Ltd in Surrey says:

“While I understand the need for it, I do think the FCA has underestimated just how much a burden reporting is for smaller advisers. The fact that product providers are all developing their own different systems adds to the problem for fully independent advisers like us, who are choosing products from across the market.”

Larger firms offering independent advice also find compliance requirements challenging, not helped by a lack of a uniform approach by product providers.

Lesley Searle from East Anglian firm Beckett Investment, which employs 40 people, including advisers and support staff says:

“It’s essential our compliance reporting demonstrates that the advice we give our clients is truly independent. Providers could do more to help us save time by taking a more standardised approach.”