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, found that for 35% of smaller businesses, regulatory costs are now 'excessive.'
The research, which considers advisory business with 10 or fewer approved intermediaries as a small business, also showed that small businesses felt the regulator had also failed to provide sufficient guidance to firms.
The panel also 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, including advisers, solicitors, small fund managers and insurance companies, 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 take better account of their views, particularly with new entrants to regulation from general insurance and mortgage intermediaries being mainly small firms.'
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