Four in five (79%) financial advisers and wealth managers have seen an increase in compliance expenditure over the past year, according to a new report.

Almost all (96%) of the 52 firms surveyed for PIMFA’s Regulatory Insights Tracker said that regulatory change is diverting time and resources away from other priorities, with almost a third (29%) stating that this is happening to a “large extent”.

Firms called for clearer and more consistent regulatory communication (54%), and simplified reporting and reduced duplication of returns (48%).

While half of those surveyed (54%) said they now feel clearer about what is required to remain compliant compared with this time last year, nearly half (46%) still do not feel clearer about how to best remain compliant with regulatory requirements overall.

Consumer Duty in particular was dominating firms’ compliance activity. Four in five (85%) of respondents said it was the requirement demanding the single most time and attention, followed by customer vulnerability (52%).

Firms were also relatively pessimistic about the FCA’s proposed Targeted Support and Simplified Advice proposals. Just under four in ten (39%) agreed that proposed changes around Targeted Support and Simplified Advice would help their firm deliver better outcomes for more customers.

David Ostojitsch, director of government relations and policy at PIMFA, said there is a clear need for more consistent regulation.

He said: “These findings indicate that while our members are committed to delivering the best possible outcomes for clients, the cumulative impact of regulatory change is making it harder for firms to do so, while juggling other priorities.

“There has been real progress in some areas, and we welcome the work the FCA are doing to improve this burden for firms, but there remains more to do. In line with its desire to be a smarter regulator, we need to see a regulatory framework that is simpler, more proportionate and more consistent for firms to thrive and continue supporting long-term growth in the UK economy.”

PIMFA surveyed 52 wealth managers, financial advisers, and Financial Planners in September 2025.