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Advisers should get help to deal with post-RDR world, Hagues tells Tyrie

The founder of advisory consultancy Retiring IFA made the comments in an open letter to Andrew Tyrie, head of the Treasury select committee, in which he also challenged the government to help those it has tied up with red tape.

In the letter Mr Hagues said: “You have said advisers need to provide a robust figure of the total cost of regulation to better hold the FCA to account.

“But the total cost of regulation currently constitutes more than a quarter of financial advisers’ business turnover. And this cost of trade is ultimately paid for by the public.”

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Mr Hagues said policies had been implemented that would “kill the sector without giving the profession the opportunity to adapt to current market changes”.

He added: “Until you feel that adviser owners could present their new business models to a Dragons’ Den scenario, you have not done enough to ensure the law of competition can drive this sector.”

His comments followed ongoing debate between the industry and regulatory bodies over revelations in January that some advisory firms had overpaid their regulatory fees.