The Financial Conduct Authority intends to survey smaller financial advice firms on the impact of regulation, with the aim of ensuring these opinions are taken into consideration.
In an update posted on its website today (January 17) the regulator advised it had instructed independent consultants Kantar Public to undertake the work over the next month.
Kantar Public will conduct in-depth interviews with a "small representative" of sample firms on the specific impacts of FCA regulation.
A spokesman for the FCA said the survey would help ensure its cost benefit analyses and judgements of proportionality take into consideration smaller firm's circumstances.
The regulator said the initial interviews will be used to shape an online questionnaire which will be sent to a larger sample of firms in April and May, with all results to remain anonymous.
The FCA said if advisers are contacted by Kantar, it would "greatly appreciate" participation.
Alan Chan, director at IFS Wealth & Pensions, said he thinks the FCA reaching out to smaller firms is a positive step.
He said: "As with any changes in regulation, smaller firms are hit the hardest but can often be overlooked or swept under the carpet.
"Normally surveys engage with larger stakeholders in the industry and so it is good to involve smaller firms, of which there are a lot of and who feel the impact of regulation just as much as others."
The FCA's work comes after the Heath Report Three surveyed 249 adviser firms, representing 865 advisers, on the current availability and future of professional advice in the UK and extrapolated the results across the entire industry.
The 50-page report, produced by director general of trade body Libertatum Garry Heath, stated: "We have now completed the five-year window after the "cull" created by the introduction of RDR.
"It is therefore likely that, having completed this period, advisers might start to leave in greater numbers."
The report found 5 per cent of advisers, a total of 1,650, have immediate plans to retire and another 16 per cent, a total of 5,280 advisers, hope to retire in the next five years.
Mr Heath added: "Unless these advisers are replaced by new recruits, the number of consumers accessing advice could be under one million in 10 years.
"More importantly the cost of regulation will be split amongst a much smaller number of clients. The current fixed cost of regulation is £72 a year.
"Do you fancy explaining to your client that the cost is now £147? You may have to in five years."
rachel.addison@ft.com
