The Financial Conduct Authority is walking a "tight rope" balancing between a minimum standard of compliance and promoting competition in the market but advisers must now be allowed respite from new regulation, a compliance specialist has urged.
Speaking in a video interview with FTAdviser Mark Turner, managing director of compliance and regulatory consulting at Duff & Phelps, said he would like to see the "burden" of incoming regulation slow down for advisers in the near future.
He said: "For advisers over the next one, two, three years I hope there will be a period of consolidation where they can make sure they really understand the impact of these regulations [Mifid and the Senior Managers and Certification Regime]."
Requirements under the Senior Managers and Certification Regime are already in place for banks, but once extended to the wider financial services industry in December this year, they will require bosses performing key roles to gain FCA approval before starting work, and receive a 'statement of responsibilities' that clearly says what they are responsible and accountable for.
Mr Turner said these new rules, alongside Mifid II, have been two "really big ticket items" which have driven change in the industry and will continue to do so.
He added: "I think it’s probably fair to say that the regulators are learning as these new flagship regimes are implemented, and I think what we will see over the next couple of years is less of the really big ticket new regulation.
"Brexit has been a bit of distraction for the regulator which maybe has had an unintended positive consequence of regulation slowing down a little bit."
The regulator is walking a "tight rope" in ensuring a minimum standard of regulation and compliance whilst promoting competition in the market, Mr Turner said.
He added: "I do know from talking to smaller firms that doesn’t always feel the case and it sometimes feels like the FCA is not being proportionate, but I do feel the FCA has a difficult balance to strike and it is generally mindful of promoting competition whilst maintaining a minimum standard."
Speaking on the regulator's "Inside FCA" podcast earlier this year Andrew Bailey refuted claims the regulator does not want companies in the financial services sector to make a profit, but said there was a "balance to strike in society".
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