Regulations more challenging than Covid, say advisers
Nearly half of advisers (42 per cent) say regulations pose the biggest challenge to their business while only 16 per cent point to Covid-19 mutations as the primary challenge.
Fewer than one in 10 identifies inflation (8 per cent) and slowing growth (6 per cent) as the biggest challenge, while geopolitical risks (5 per cent) and Brexit (4 per cent) are even lower down the list of concerns. UK advisers say regulations present more of a challenge than Covid19 mutations, volatile markets and Brexit.
The study from CoreData Research surveyed nearly 400 UK financial advisers in June and found that regulations, cited by nearly half of respondents (42 per cent), 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 per cent) and volatile markets (12 per cent). Furthermore, less than one in 10 advisers point to inflation (8 per cent) cybersecurity (7 per cent) and slowing economic growth (6 per cent) as the primary challenge over the next year. Meanwhile, geopolitical risks (5 per cent) and Brexit (4 per cent) 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,” says 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.”