The Association of Professional Financial Advisers has called on the Financial Conduct Authority to reduce regulatory barriers in order to improve innovation among the advice profession.
Chris Hannant, director general at Apfa, said the regulator needs to recognise the role it plays in creating the compliance driven, risk adverse environment which hinders innovation.
His comments come in response to the FCA’s call for input on Project Innovate, the regulator’s bid to foster innovation.
Mr Hannant said: “The FCA handbook is overly complicated, and understanding the rules is a complex and often costly process for firms, some of which feel the need to employ compliance specialists.
“This overly prescriptive environment is a barrier to innovation for any regulated business seeking to make changes to the way it operates.”
Last week he told FTAdviser that the FCA should conduct a “thorough review” of its handbook for advisers, commenting that at if printed, the document would stack up to eight foot worth of A4 sheets.
Mr Hannant stated that if the FCA is able to give new firms some flexibility around the rules, this should translate into changes that all firms can benefit from.
“We call on the FCA to reduce this regulatory burden, and simplify its rule book, so that firms know what is expected of them and are free to innovate.”
