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Financial planners identify regulation as biggest challenge

advisers

Regulation is the biggest challenge to the way financial advisers work in 2022, according to a Personal Finance Society poll.

A social media survey of 169 Personal Finance Society members in December 2021 revealed two out of five financial planning professionals felt further rules and red tape from policymakers and the Financial Conduct Authority is their biggest hurdle they face in the next 12 months.

One in five felt changing client expectations would be the most significant obstacle they need to overcome in 2022 while 21 per cent felt getting to grips with hybrid working would be the greatest challenge they face.

One in five stated improving their skills and knowledge to best serve clients would be their biggest challenge in the year ahead.

Sarah Lord, President of the Personal Finance Society, said the profession’s concerns about regulation was understandable given that the Retail Distribution Review and Financial Advice Market Review resulted in reduced access to advice leaving a growing number of consumers open to falling foul of scammers.

She said: “The Financial Conduct Authority’s review of RDR and FAMR saw the regulator acknowledge that financial planning can help improve people’s lives and access to our profession’s services ‘at the right time’ is important.

“Financial advice performs a vital function in allowing people to provide for later life, to save for major expenses or for a home, and can help them deal with unexpected shocks – such as the pandemic.

“The Personal Finance Society is committed to continuing dialogue with the regulator and policymakers to ensure rules for the profession increase access to financial advice by allowing companies to grow and innovate to meet consumer’s needs.

“The pandemic has transformed the way clients expect to receive advice resulting in growing use of meetings technology plus electronic sharing of documents. It is vital that regulation keeps pace with the new ways clients expect us to engage with them and that rules enable the profession to safely continue to help them make informed financial decisions to secure their futures.”

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