The Government has told the Finance Industry Regulator, the Financial Services Authority (FSA), that they should reduce compliance costs, especially for smaller firms, as the costs are disproportionate. Larger firms can absorb the costs much easier than smaller firms can.
The FSA is now developing a project to see how it works with small businesses in partnership with the Independent Practitioner Panel. The regulators' business plan for next year is expected to produce less documents, shorten papers, as well as make its handbook more user friendly.
Our view
This is indeed welcome news for us and many other smaller financial advisers.