The third annual survey of IFAs revealed that more than two thirds of advisers (67%) say increasing and changing regulations are causing them concern.
When asked about Packaged Retail and Insurance-based Investment Products (PRIIPs) legislation and Key Information Documents, 44% said they were aware of them but do not yet fully understand them, and nearly a third (29%) claim to have not heard of them before. Overall, 68% think the Financial Services Compensation Scheme (FSCS) needs reviewing and updating.
Brexit is a particular source of apprehension for financial advisers as 38% of those surveyed said clients have been left confused by the UK’s planned departure from the EU and its impact on regulation.
The impact of pension freedoms and constant regulatory change in this area is also being felt with many predicting retirement to be a key focus area for both those planning retirement and those already retired.
Richard Priestley, executive director at Canada Life, said:“Advisers are on the front line of change and so it is no surprise regulation is keeping them awake at night. The challenge remains for advisers to navigate this complex ever changing landscape when providing advice.
“As the research shows pension reforms continue to impact Financial Planning needs, and the demand for clear, straightforward pension advice remains apparent.
“With the qualifying age for the state pension on an upward curve, and pension freedom giving retirees more choice than ever before, many people will be uncertain what their options are.”
The Research was carried out among 328 professional advisers in October 2017.