A new Financial Services Practitioner Panel industry survey shows that support for the RDR has dropped by more than 10 per cent in two years.
Support for the RDR has fallen by more than 10 per cent over two years, according to a Financial Services Practitioner Panel industry survey based on responses from 4,256 regulated firms.
The survey shows only 47 per cent of authorised firms say they welcome the initiative – down from 60 per cent two years ago.
Iain Cornish, chairman of the FSPP said to the Financial Times: “There is a dichotomy between smaller firms and larger firms. Smaller firms see rising charges and feel victims of the financial crisis. At larger firms you see greater levels of support.”
He added: “A lot of what the regulator has been doing, you are not going to be able to judge the effectiveness for two or three years.”
In 2008, 59 per cent of retail firms welcomed the review and that fell to 44 per cent last year. Three quarters of wholesale firms continue to say the initiative is welcome. Just four in ten financial advisers support the RDR, slightly less than the average. Only 26 per cent of advisers feel the RDR changes to remuneration would benefit consumers.
A large majority of FSA-regulated executives say that stronger regulation was good for the industry, but six in 10 believe supervision of their own business was too intrusive. Nearly seven in ten say compliance costs have increased and six in 10 say they had become excessive, with retail and small businesses particularly likely to feel the regulatory pressure has gone too far.
Fewer than a fifth of respondents say the regulator handled the financial crisis effectively with just three in 10 believing the coalition’s plans to break up the FSA will solve the problems.