UK advisers say regulations present more of a challenge than Covid-19 mutations, volatile markets and Brexit, new research shows.
A CoreData Research study surveying nearly 400 UK financial advisers in June found that regulations, cited by nearly half of respondents (42%), pose the biggest challenge to their business over the next 12 months. This is a significantly higher proportion than those pointing to the challenge of Covid-19 mutations (16%) and volatile markets (12%).
Furthermore, less than one in 10 advisers point to inflation (8%) cybersecurity (7%) and slowing economic growth (6%) as the primary challenge over the next year. Meanwhile, geopolitical risks (5%) and Brexit (4%) are even lower down the list of concerns.
“The fact that UK advisers consider regulations to be their number one challenge amid an unprecedented global pandemic and its ongoing fallout shows just how much of a concern this presents,” said Andrew Inwood, founder and principal of CoreData.
“While advisers have had to get to grips with PROD and MiFID II, they now need to turn their attention towards the likely introduction of ESG rules similar in scope to the EU’s SFDR. And with the FCA also setting out plans for a new consumer duty, advice firms face an increased regulatory burden if they are not adequately prepared.”