The increasing costs from the Financial Conduct Authority, Financial Services Compensation Scheme, and Financial Ombudsman Service, was cited as the biggest hurdle by Financial Planners with over two thirds of Financial Planners telling Financial Planning Magazine that is the biggest hurdle facing their firm in the next two years.

This overtook last year’s biggest hurdle of rising professional indemnity insurance costs which was a concern for less than 6 in 10 respondents.

Interestingly only 12% cited recovering from Coronavirus impact as the biggest challenge compared to the 39% of respondents who listed it in 2020.

Sale or retirement from the business and increasing competition were also mentioned as challenges.

One planner said: “I would say that PI and regulatory costs are not so much a hurdle but a roadblock. Whether it’s possible to continue operating is not something within my control which isn’t an acceptable position to be in as a business owner.”

Another cited as their main concerns: “Lack of connectivity and digitalisation from providers and investment managers. Many talk a good game but are still in the paper dark ages.”

To read more of our annual Financial Planning Survey, a free preview of the latest edition of Financial Planning Magazine is now available online. 

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