Regulators urged to improve policy communications to advice sector

Trade body PIMFA has called on policymakers to provide greater “clarity, consistency and proportionality” in their communications to the financial advice sector.

The group suggested that while the sector recognises the importance of proportionate regulation, the volume of reforms and lack of clarity in communications are having a significant impact on day-to-day operations.

PIMFA, which represents wealth management and financial advice firms, surveyed 52 of its members and found that 96% agreed that regulatory change is diverting time and resources away from other priorities, with 29% stating that this is happening to a “large extent”.

When asked which regulatory priorities should be at the top of the agenda in the next 12 months, the majority (54%) of firms highlighted the need for clearer and more consistent regulatory communication, ahead of simplified reporting and reduced duplication of returns (48%).

Director of government relations and policy at PIMFA, David Ostojitsch, commented: “The wealth management and financial advice sector plays a critical role in supporting households, businesses and the wider economy, managing over £1.65trn in savings and investments.

“These findings indicate that while our members are committed to delivering the best possible outcomes for clients, the cumulative impact of regulatory change is making it harder for firms to do so, while juggling other priorities.”

PIMFA’s research also indicated that compliance costs are also front of mind, with 79% of firms reporting an increase in compliance expenditure over the past 12 months.

While 54% said they now feel clearer about what is required to remain compliant compared with this time last year, 46% still do not and were unsure about how to best remain compliant with regulatory requirements overall.

“There has been real progress in some areas, and we welcome the work the FCA are doing to improve this burden for firms, but there remains more to do,” added Ostojitsch.

“In line with its desire to be a smarter regulator, we need to see a regulatory framework that is simpler, more proportionate and more consistent for firms to thrive and continue supporting long-term growth in the UK economy.”



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.