Advisers brace themselves for another financial resilience survey

In an email seen by FTAdviser sent to advisers, the Financial Conduct Authority said it wanted to advise individuals that it will shortly be sending a survey to help it better understand the level of financial resilience firms have. 

“This is a repeat of a survey you may have received in October 2022 and must be completed in addition,” it wrote.

“You will receive the survey on one of the following dates: 7th, 8th, 9th and 10th February 2023. Your response must be submitted within 15 working days of receipt of the survey.”

This survey is being sent to all relevant firms in the FCA’s selected portfolios and it said there are a small number of exceptions for reasons such as where firms have provided related information to it as part of another data collection exercise. 

“We expect to repeat the survey in the future,” it said.

However, some advisers have noted their concerns about the survey.

Dennis Hall, chartered financial planner at Yellowtail Financial Planning, said: “This is so close to the half yearly RMAR return for most firms, who will be struggling with tax year end work as it is, which is likely to be dominated by the CGT allowance reduction in April. 

“It’s not an onerous task necessarily, but such a useless one as there is no evidence to show that completing these surveys has added any consumer protection at all, but it is a burden, another burden, and all these non client facing tasks take firms away from the day job.”

Likewise, Richard Bishop, managing director at PFEP Wealth Management, said: "Why does the FCA need another survey so soon after October 2022, what do they think has happened in four months? Why does it need to go back within 15 days? They could allow more time, no reason they need the data back that quick.”

The City watchdog said it requires advisers to complete the survey in full, under section 165 of the Financial Services & Markets Act (FSMA) 2000. 

The FCA may exercise its powers under FSMA for firms who do not respond. 

“We have designed this survey so that it is quick and simple to complete. However, if due to exceptional circumstances you cannot access your financial information, please ensure that you complete the questions where the relevant information is available.”

Bishop said he appreciates the FCA has a job to ensure small firms are not facing difficulties.

“However the irony of the consumer duty appears to pass them by, small firms directors are pretty vulnerable at the moment and the FCA should be taking this into consideration,” he said. 

"Overall, I'm glad the FCA is monitoring firms, times are tough and the largest advice firms are seeing a significant drop in new business, however concerns about regulatory fees and levies puts huge pressure on directors, it would a positive step for the FCA and FSCS to start capping fees and levies in 2023 and 2024 for small firms".

Elsewhere, Carl McGovern, mortgage and protection adviser at Pennine Mortgages, said as a network member, he does not need to do the survey, but he is aware of it and “it is going down like a lead balloon”.

“I just think it is about time they left advisers alone with these things, as we provide Gabriel returns and accounts so why the need for constant surveys,” he said. 

“They need to get their own house in order first, before hounding people like they are.”

The regulator sent out its eighth survey in September, asking them to complete it by the beginning of November.

At the time, some advisers continued to bemoan the survey, arguing that the time it takes to fill it in only makes it harder for smaller businesses to continue trading and offer a consistent service to clients.

FTAdviser approached the FCA but the regulator did not comment.

sonia.rach@ft.com

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