The compliance burden on smaller intermediary businesses now represents more than 10% of costs in mo...
The compliance burden on smaller intermediary businesses now represents more than 10% of costs in more than a third of cases.
Research from the FSA Small Business Practitioner Panel, which was set up to advise the regulator on how to deal with smaller firms, said that for 35% of smaller businesses regulatory costs were now excessive.
The research, which considers an advisory business with 10 or less approved intermediaries as a small business, also showed that small businesses felt the regulator had failed to provide sufficient guidance to firms.
The burden of regulation is so bad, the panel found, that six out of seven small businesses believed the FSA's Handbook of Rules and Guidance was unclear and hard to understand.
Panel joint chairman Roger Sanders said that as well as the rising cost of regulation, 60% of smaller firms feel their views are not being taken into account by the regulator. That compares to just a third of larger firms.
Sanders said: 'Smaller businesses are feeling the burden of regulatory pressure and cost. The FSA needs to decide how it can better take account of their views.'
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