The swell of new regulation in financial services "frightens" people away from seeking financial advice, while the proliferation of various fee structures is proving a "nightmare" for those who do engage, according to St James's Place CEO David Bellamy.
"It's just become more burdensome for people [to seek advice]," said Bellamy, who was taking part in a panel discussion on the future of private banking in London on Tuesday.
A drop in adviser numbers - there were some 21,700 practicing advisers in July compared with almost 23,800 recorded at the same point last year - has restricted investor choice, Bellamy (pictured) said.
New rules governing how advisers are paid and what they must disclose to clients, as well as setting them a higher minimum qualification benchmark, were introduced on 1 January this year following a review of retail distribution that lasted more than six years.
The drop in adviser numbers was an "unintended consequence" of the then Financial Services Authority's actions, according to head of JPMorgan Chase & Co Tracey Reddings.
Also speaking at the conference, which was covered by Bloomberg, Reddings said: "The intention of the regulation was to create a stronger environment for better advice for clients."
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