Adviser bodies call for 'smarter' regulation

Adviser bodies call for 'smarter' regulation

The rising cost of professional indemnity insurance premiums and financial burden of regulation has topped the wish lists of two adviser bodies.

The Personal Investment Management & Financial Advice Association urged the prime minister to show he has "designs beyond Brexit" in hopes for smarter regulation to tackle poor practice in the advice sector. 

The trade body warned bad practice had led to an erosion of trust in the industry and increased regulatory costs alongside Financial Services Compensation Scheme bills and professional indemnity premiums.

Liz Field, chief executive of Pimfa, said: "When parliament returns we will do our utmost to ensure that this community is at the heart of any plans which go towards building a culture of saving and investment." 

Keith Richards, chief executive of the Personal Finance Society, also appealed to the new government to address the rising cost of business in the advice industry now the prime minister had the opportunity to "push through Brexit on his terms". 

Mr Richards said: "I hope now that the prime minister has a clear mandate on Brexit, both the government and Financial Conduct Authority can focus on tackling the issues facing pension freedoms, more effective consumer financial education and better support a sustainable financial advice sector.

"The availability of professional indemnity insurance and the cost of the FSCS is restricting access to much needed  financial advice and it needs to be a priority for our new government to address this."

The PFS boss said the professional body's task was to convince the new government of the need to approach this issue strategically and "through primary legislation if necessary".