Regulation  

Hannant asks chancellor for less regulation

Hannant asks chancellor for less regulation

Apfa has written to George Osborne urging him to improve the accountability of the FCA and cut regulation.

Chris Hannant, the trade body’s director general, has asked the chancellor to embed the government’s Better Regulation principles into financial services.

He wrote: “It remains unclear as to why the financial services sector appears to have escaped scrutiny under the Better Regulation programme.

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“Although we understand that regulatory action was required in the wake of the financial crash, the financial advice sector is struggling under the current regulatory burden and with a regulator that appears unable to abide by the same budgetary principles it applies to those it regulates.

“Other industries which come under the purview of an independent regulator, such as energy and water, have been part of the ‘Red Tape Challenge’, for instance, and we fail to see why this should not be the case with the finance sector.”

Mr Hannant said the FCA should be required to include as one of its service standards a commitment to regularly review and update its handbook.

Adviser view

Dan Farrow, director of Essex-based SBN Wealth Management, said: “A lot of the regulatory burden of the FCA is implied rather than actual. Financial advisers have been bitten so hard in the past that to insulate themselves they put as much into their reports as they can.”